Do income shocks play a determining role in children's schooling in the presence of credit market imperfection in Cameroon?-Reference-Cited by-同舟云学术

Do income shocks play a determining role in children's schooling in the presence of credit market imperfection in Cameroon?

Published:2022-08-31 Issue: Volume: Page:
ISSN:
Container-title:
language:
Short-container-title:

Author:

MBEBI Olivier EWONDO¹,Nzepang Fabrice²,EBOUE Roméal¹

Affiliation:

1. University of Douala

2. Research Center on Innovation, Institutions and Inclusive Development

Abstract

Abstract This paper examines the determinants of children's schooling under imperfect credit market conditions in Cameroon, with a particular focus on the role of monetary and non-monetary shocks. Households that are more vulnerable to shocks have a greater incentive to build up a buffer stock to protect themselves against unforeseen negative shocks, and keeping children out of school may be part of such a strategy. The study uses microeconomic data from the fourth Cameroonian Household Survey (ECAM IV) conducted in 2014 by the National Institute of Statistics (INS) and an instrumental variable Probit model to demonstrate its point. The results show that uncertainty about household income as measured by transitory income and declining household income decrease the probability of children attending school in Cameroon. The same is true for increasing household size. Nevertheless, access to the credit market is a factor of household resilience to shocks.Classification JEL: E24, I21, I31, O15.

Publisher

Research Square Platform LLC

Reference36 articles.

1. Basab D., and A. Mohamed-Ihsan (2011), « Income Shocks reduce human capital investments: evidence from five East European countries », World Bank, Working Paper n°5926.

2. Becker, G.S. (1967), « Human Capital and the Personal Distribution of Income », Columbia University Press.

3. Becker, G.S. (1965), « A Theory of Allocation of Time », Economic Journal (75).

4. « Human Capital and the Rise and Fall of Families »;Becker G;Journal of Labor Economics,1986

5. Beegle, K., D. Rajeev and G. Roberta (2003), « Child Labor, Income Shocks, and Access to Credit», World Bank Policy Research Working Paper, n°3075.