Scandinavian Working Papers in Economics
Working Papers in Economics,
University of Gothenburg, Department of Economics
No 494: Does a Diversification Motive Influence Children’s School Entry in the Ethiopian Highlands?
Annika Lindskog ()
Additional contact information
Annika Lindskog: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG
Abstract: Household-level diversification of human capital investments is investigated. A simple model is developed, followed by an empirical analysis using 2000-2007 data from the rural Amhara region of Ethiopia. Diversification would imply negative siblings’ dependency and be more important in more risk-averse households. Hence it is investigated if older siblings’ literacy has a more negative (smaller if positive) impact on younger siblings’ school entry in more risk-averse households. Results suggest diversification across brothers, but are not statistically strong, and with forces creating positive sibling dependency dominating over diversification.
Keywords: Diversification; Education; Ethiopia; Uncertainty
25 pages, April 1, 2011
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