Taking a rain-check: the effect of droughts on educational attainment in Brazil

Maddaloni, Dario; McKnight, Lucille; Serra, Francesco; Wibisono, Iqbal

Taking a rain-check: the effect of droughts on educational attainment in Brazil

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Citació

Maddaloni, D, McKnight, L, Serra, F, Wibisono, I. Taking a rain-check: the effect of droughts on educational attainment in Brazil. 2022. handle: http://hdl.handle.net/10230/56381

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Resum

Droughts are thought to lower the opportunity cost of investing in education. However, there is limited evidence on the impact of droughts on human capital investment in children’s education, especially in developing countries. Our study contributes to the literature by providing empirical evidence to a theoretical model of the trade off between investment in education and labor during negative rainfall shocks. Using the Brazilian Schools Panel, we estimate a fixed effects specification and find that higher drought intensity leads to higher investment in schooling. Additionally, we find that longer droughts lead to a larger magnitude of the effect on educational investment. We also conduct heterogeneity analysis to understand the differential effect on rural and urban areas, as well as public and private schools.

Descripció

Treball fi de màster de: Master's Degree in Specialized Economic Analysis: Economics of Public Policy Program
Tutors: Ada Ferrer-i-Carbonell, Joan Llull