Analysis of School Enrollment in Ghana: A Sequential Approach

In this paper, we depart from the standard way of analyzing school enrollment by accounting explicitly for educational selectivity in order to examine the determinants of child school enrollment in Ghana. Using data from the Ghana Living Standard Survey round 6 (GLSS 6), we estimate a three‐step sequential logit model for the determinants of secondary school enrollment and its dependence on completing primary school. We find that family resources such as parental education, household income and the gender of the head of the household play a role in households' child schooling decisions. Educated parents are relatively more likely to enroll their children in primary school and keep them in school until they complete primary education. As well, we show that educated parents do not promote a gender‐biased investment in the schooling of children at the primary level. While household welfare does not influence children's entry into primary school importantly, their completion of primary school depends on household welfare. The study sheds more light on the pro‐male bias phenomenon regarding entry into primary school and primary school completion. Policies to promote the achievement of Sustainable Development Goal 4 in Ghana must be grade sensitive.     

Entrepreneurship in post‐conflict transition1

We examine new self‐employment entry and its viability in Bosnia and Herzegovina, using a rich household survey for the years 2001–2004. We find that wealthier households are more likely to engage in viable self‐employment and create employment suggesting an important role for financing constraints. Specifically, although having an existing bank relationship is not significantly related to the entry decision, it is positively related to the survival for new entrepreneurs and their employment creation. We also find a non‐linear relationship between remittances and entry in that individuals not receiving remittances are more likely to enter self‐employment; but, if they do receive them, the likelihood of starting a business increases in the fraction of wealth received from domestic remittances. Finally, people working in the informal sector are more likely to become viable entrepreneurs, particularly those provided with loans from micro‐credit organizations. These findings support the perception of the informal sector as an incubator for formal self‐employment in the early years of transition.     

Migration and rural poverty in China

We analyze two complementary household datasets from China's poor areas to examine whether the poor migrate and whether migration helps the poor. We find an inverted-U-shaped relationship between household endowments and the likelihood of migration. Over time, the poor are more likely to migrate. Using household panel data and taking prior village migration networks as an instrument, we find that having a migrant increases a household's income per capita by 8.5 to 13.1 percent, but that the overall impact on poverty is modest because most poor people do not migrate. Migrants remit a large share of their income and the amount of these remittances is responsive somewhat to the needs of other family members. Journal of Comparative Economics 33 (4) (2005) 688–709.     

Loafing or learning?—the demand for informal education

Using detailed time use data for Germany a positive correlation is found between the level of schooling and time investments in informal education. Two hypotheses explain this observation: (1) highly educated people have higher opportunity costs of their leisure time and thus prefer leisure activities which add to their market productivity (wage effect) and (2) highly educated people have a preference for ‘high quality’ leisure (taste effect). The demand for informal education is derived in a household production model accounting for both explanations. An empirical investigation finds evidence for both effects with the taste effect being more important.     

Inequality aversion and risk aversion

This note shows that for two social welfare functions which are inequality averse with respect to certainty equivalents, if one is more inequality averse for certainty equivalents than the other, the household preference induced by optimally allocating aggregate bundles according to this social welfare function is more risk averse than the other. We present examples showing that this comparative static can be reversed if absolute inequality aversion is dropped. We show that the utilitarian rule always induces the least risk averse household preference among all social welfare functions (this corresponds to the sum of certainty equivalents).     

Anthropometric failure and persistence of poverty in rural India

Recent studies have drawn attention to the high prevalence of stunting among children in rural India. In fact, these estimates point to more pervasive deprivation than conventional measures of poverty based on income or consumption expenditure shortfalls imply. Since stunting reflects cumulative nutritional and health deprivation, it is likely to persist despite higher incomes. With a view to shedding some new light on this issue, an analysis of the determinants of stunting is carried out, based on a recent all‐India survey of rural households. While income matters, other factors acting independently of it matter too. These include household size, whether household head is male, caste affiliation, mother’s age at marriage, mother’s age, age composition of children, male–female wage differences, hygiene and sanitation facilities, and prices of food items. So, while higher incomes will help mitigate stunting, careful attention must also be given to enhancing women’s autonomy through more remunerative employment opportunities for them, enabling households to improve hygiene and sanitation facilities, and facilitating more competitive local markets for food.     

Determinants of child morbidity and factors governing utilization of child health care: evidence from rural India

Prevention as well as effective treatment of respiratory infections and diarrhoea depends on several individual, household and community level factors. The objective of this article is to estimate the role played by such factors in determining the occurrence of such diseases and utilization of formal health care for children under the age of three in India. The major findings are briefly enlisted as follows. First, a woman with greater educational qualification and autonomy in terms of her power to take decisions on her own, control over household resources and complete freedom to move beyond the confines of her household exerts a significant influence on the probability of seeking care. In addition to this, formal care is more likely to be sought for children whose mothers are more exposed to the media. Programmes devised to enhance utilization of formal health care for children should be targeted to catering for the needs of the vulnerable group i.e. female child, predominantly, residing in households belonging to Scheduled Tribe. In addition to this, children belonging to Muslim households are at higher risk of contracting the diseases but there is no significant difference in their health seeking behaviour as compared to other religious groups.     

Remittances channels and the physical growth of Honduran children

Ensuring the availability of food and other resources for young children is important for sustaining physical growth. We examine the role of remittances and its associated implications in determining heights and weights of 4459 children aged 0–5 years in Honduras in 2004. To address the endogeneity problem with household remittance receipt, we take advantage of the timing of Hurricane Mitch in 1998 to construct instrumental variables that are exogenously related to migration decisions made before children included in the later survey were conceived. We find that children are significantly taller and heavier for their age and gender in households receiving remittances. Further investigation of household spending indicates significant changes in food purchases and dietary diversity. Households receiving remittances are more likely to include fish, fruits, and meats in their diets. Additional findings also indicate that households receiving remittances spend absolutely more on food, health care, education, and durable goods. Overall, the findings provide strong evidence that remittances change household consumption and increase children’s body sizes.     

Performance pay and assortative matching

We show that couples sort on performance pay with dual receipt couples much more likely than predicted by random. In addition, we show that the return to performance pay appears largely invariant to whether one's spouse earns performance pay. The major exception is that among the college educated, the return to performance pay is larger for women when their spouse also receives performance pay. Thus, dual receipt households concentrate the returns to performance pay hinting that performance pay may influence the distribution of household income.     

International migration,remittances, and schooling: evidence from El Salvador

We examine the effect of remittances from abroad on households' schooling decisions using data for El Salvador. Following the massive war-related emigration of the 1980s, remittances became a significant source of household income throughout the 1990s. We use the Cox proportional hazard model to examine the determinants of school attendance. Measuring income from a source that is uncorrelated with parental schooling—remittances—, we find that remittances have a large, significant effect on school retention. We estimate that while household income net of remittances has a small, though significant, impact on the hazard of leaving school in rural and urban areas, remittances have a much larger impact on the hazard of leaving school. In urban areas, the effect of remittances is, at its smallest, 10 times the size of the effect of other income. In rural areas, the effect of remittances is about 2.6 times that of other income. Our finding is of interest in that it suggests that subsidizing school attendance, particularly in poor areas, may have a large impact on school attendance and retention, even if parents have low levels of schooling.     

Household Strategies of Coping with Shocks in Post-crisis Russia

The paper looks at the subjective evaluations of a number of coping strategies that respondents undertook to mitigate the effect on their welfare of the Russian financial crisis. Given the dramatic drop in formal cash incomes, how are people able to adapt? What are the relative importance and effectiveness of coping strategies to resist hardship in reducing poverty for different groups of households? The results of the analysis indicate that the choices of survival strategies are determined by the level of human capital in the household. The higher the household human capital, the more likely the household is to choose active strategies. Households with low human capital, households headed by pensioners, and low‐educated households are more likely to be socially excluded. A specific set of policy interventions should be targeted on such households to avoid the entrenchment of poverty, and the trend toward marginalization and impoverishment of these groups should be expressly monitored.     

Female Autonomy and Health Care in Developing Countries

Decisions within the household determine the allocation of resources. Theory suggests that the more autonomous women are within the household, the greater influence they will have in that allocation. This paper utilizes several measures of a woman's autonomy within the household. It is hypothesized that the greater the woman's autonomy, the more likely she will be to visit a doctor, rather than other traditional sources of healing/care, when ill. This hypothesis is tested using data drawn from Uttar Pradesh and Bihar in India. The results lend support to the importance of autonomy for a woman in increasing her likelihood of visiting a medical doctor when ill. Additionally, the results show that socio‐economic differences go a long way in explaining differences in healthcare choices for the sick.     

An Economic Examination of the Post-Transition Fertility Decline in Russia

This article uses longitudinal household data to examine the decline in the Total Fertility Rate in Russia from 2.0 in 1989 to 1.3 in 2001. Using individual and community-level panel data spanning the 1994–2001 era, the decline in household income can account for about a 28% decline in yearly birth propensities amongst married couples. The relationship between educational attainment and fertility appears to have changed markedly in the post-Soviet era. More educated individuals now have greater propensities to bear children than their vocationally educated counterparts within marriage. Female labour force participation is not strongly associated with fertility decisions of married women in the post-Soviet era, and local provisions for children also do not have important effects. These results suggest that improving real family incomes will be more important in raising fertility rates than improving child benefits levels or increasing community childcare provisions.     

Intertemporal elasticity of substitution and risk aversion: are they related empirically?

This article examines the relationship between two types of preference: preference of intertemporal choices and preference towards risk. In the simplest form of the constant relative risk aversion utility function, the intertemporal elasticity of substitution (IES) and risk aversion have an inverse relationship. However, there is no empirical evidence that suggests this inverse relationship holds. We examine the relationship between risk aversion and IES using household consumption data from the Consumer Expenditure Survey during 1996–2010. Multiple risk domains are selected to represent risk preference, and for each domain, we consider some households to be more risk averse than others. We separately estimate IES for the more risk-averse and less risk-averse households. We find that the IES estimates are generally smaller for the more risk-averse households than for the less risk-averse households and that the difference is statistically significant in the majority of the financial domains. This finding supports the inverse relationship between the two parameters, although considerable heterogeneity is found across domains.     

Matching in community-based organizations

Using a rich dataset from West Africa, we examine the household characteristics associated with membership in community-based organizations (CBOs). We find that on average it is the more fortunate members of rural society who belong in CBOs. In Senegal, the dominant criterion is land ownership. In Burkina Faso it is age and family ties with village authorities. Ethnicity plays a role as well: CBO membership is less likely for ethnic groups that traditionally emphasize livestock raising. Next we look for evidence of assortative matching along multiple dimensions, using an original methodology based on dyadic regressions. We find robust evidence of positive assorting by physical and ethnic proximity as well as by wealth and household size. Along certain dimensions, donor-sponsored CBOs are less elitist and more inclusive. But the reverse is true for other dimensions, particularly in Burkina Faso.     

Determinants of women's financial inclusion: Evidence from India

A number of studies have analyzed the determinants of financial inclusion in India, but few if any have focused specifically on the factors that shape women's access to finance. This paper draws on the trove of women-specific data collected in the fourth round of the National Family Health Survey (NFHS-4), conducted in 2015–16 in India, to examine the factors that influence women's access to finance. The results indicate that while the forces that shape women's access to finance function at multiple levels, micro-level factors appear to be powerful drivers of inclusion. The analysis reveals that household-level economic indicators like wealth, gender of household head and their rural-urban location are crucial, but so are individual-level characteristics which explain approximately 83% of the variation in the multilevel regressions. Informal gender norms that govern women's mobility and economic activity crucially influence the ability of women to access loans and open bank accounts.     

Voter turnout and the principle of ‘one person,one vote’: empirical evidence from the constituency freeze in India

This article uses panel data from national and state elections in India during the period 1977–2007 to examine the effect of inequality in constituency population size on voter turnout. During this period, constituency boundaries in India remained fixed. As a result, differences in population size between constituencies increased, thus changing the value of a single vote. Using this large variation in population size and informative data, this article carefully distinguishes the effect of population size from other factors. We find that an increase of one million electorates decreases voter turnout by 12–27%. In addition, we find that the share of votes gained by national political parties is greater in small-population constituencies. This suggests that political parties direct their efforts in electoral campaigns preferentially to less populous constituencies; as a result, voters in small constituencies are more likely to participate in elections.     

Household migration in the Southern Cone: the case of Paraguay

This study of migration from Paraguay to Argentina focuses on urban to urban migration and uses about 1300 interviews collected during September 1983 to May 1984 for constructing a profile of the migrants. Paraguayan migration to Argentina has historical roots. The first flows were in 1936 and 1947 and were due to war. Migrants tended to settle in Formosa and Misiones provinces in the northern region. The second waves that occurred during the 1950s, 1960s, and 1970s were to Buenos Aires. Most migration during the more recent years was motivated by economics. It is likely that the key factors were push factors in Paraguay. Migration policies in sending and receiving countries are lax. Half of the interviews were conducted among families in Gran Buenos Aires, and half were conducted among families in Asuncion, Paraguay. 33% of migrants in Argentina reported Asuncion as their last residence. Many migrants were from departments bordering on Argentina. Only 222 of the 543 heads of household who had been employed prior to departure reported that farm work had been their employment. Migration is precipitated by both economic and noneconomic factors. Logistic model findings indicate that urban migrant heads of households tended to be younger and less educated than nonmigrants. Migrants tended to be single heads of households with relatively few children. Rural migrants were less likely to be female and were more likely to have a larger family size than urban migrants. Heads of household with fewer continuous years of employment were more likely to migrate. Findings from data at the time of the interview suggest that higher relative wages were a pull force, when age, sex, education, marital status, size of business, and job seniority were controlled for. The recent democratization in Paraquay is like to attract return migrants, if urban employment opportunities are available.     

Wage inequality in Turkey, 2002–10

This paper studies the evolution of wage inequality in Turkey using household labour force survey data from 2002 to 2010. Between 2002 and 2004, the relative supply of more‐educated workers to less‐educated workers remained constant while their relative wages decreased in favour of less‐educated workers. However, between 2004 and 2010, the relative supply of more‐educated workers to less‐educated workers rose, while their relative wages remained constant or kept increasing in favour of more‐educated workers. This suggests factors other than those implied by a simple supply‐demand model are involved, such as skill‐biased technical change or minimum wage variations. The decomposition of wage inequality reveals that the price (wage) effect dominates the composition effect particularly in the first period. Our results show that the real minimum wage hike in 2004 corresponds to a major institutional change, which proved to be welfare‐increasing in terms of wage inequality. The upper‐tail (90/50) wage inequality decreased between 2002 and 2004 and stayed constant thereafter, whereas the lower‐tail (50/10) wage inequality decreased throughout the period. Our findings thus provide evidence supporting the institutional argument for explaining wage inequality.     

Catching up? The educational mobility of migrants’ and natives’ children in Europe

Migrants into European countries are often less educated than European natives. We analyse whether migrants’ children are more or less likely than natives’ children to achieve upward educational mobility across generations, and study differences in the factors, which contribute to differences in mobility for the two groups. We find that migrants’ descendants are more often upwardly mobile (and less often downwardly mobile) than their native peers in the majority of countries studied, and show that the main factor contributing to these patterns is the education level of parents. Although a lower parental education means that their children are less likely to access the same amount of human, social and financial capital as children of more highly educated parents, migrants’ descendants over the last two generations were able to make significant progress in reducing education gaps with natives.