Aggregate Economic Shocks, Child Schooling and Child Health

Do aggregate economic shocks, such as those caused by macroeconomic crises or droughts, reduce child human capital? The answer to this question has important implications for public policy. If shocks reduce investments in children, they may transmi...

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Main Authors: Ferreira, Francisco H.G., Schady, Norbert
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
CD
GDP
LAM
Online Access:http://documents.worldbank.org/curated/en/2008/08/9794819/aggregate-economic-shocks-child-schooling-child-health
http://hdl.handle.net/10986/6790
id okr-10986-6790
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ABSENTEEISM
ACCOUNTING
ADOLESCENTS
ADULT HEALTH
ADULT MORTALITY
AGED
AIR POLLUTION
BABIES
BREASTFEEDING
BULLETIN
CAPITAL INVESTMENTS
CD
CHILD CARE
CHILD HEALTH
CHILD LABOR
CHILD MORTALITY
CHILD NUTRITION
CHILD SURVIVAL
CIVIL WAR
CONSUMPTION LEVELS
CRISES
CULTURAL CHANGE
DEMAND CURVE
DEPRESSION
DEVELOPING COUNTRIES
DEVELOPMENT ECONOMICS
DISASTERS
DISCOUNT RATE
DISEASES
EARLY CHILDHOOD
ECONOMETRIC ANALYSIS
ECONOMIC CONDITIONS
ECONOMIC CRISES
ECONOMIC DOWNTURNS
ECONOMIC FLUCTUATIONS
ECONOMICS
ECONOMICS OF EDUCATION
EDUCATED WOMEN
EDUCATIONAL ATTAINMENT
ELDERLY
EPIDEMIOLOGY
ESSENTIAL COMMODITIES
EXPECTED RETURNS
EXPECTED VALUE
EXPENDITURES
EXTERNALITIES
FAMILIES
FAMILY MEMBERS
FERTILITY
FINANCIAL CRISIS
FINANCIAL SECTOR
FUTURE RESEARCH
GDP
GDP PER CAPITA
GENDER DIFFERENCES
GROWTH RATE
HEALTH CARE
HEALTH ECONOMICS
HEALTH EFFECTS
HEALTH IMPACTS
HEALTH INDICATORS
HEALTH INVESTMENTS
HEALTH OUTCOMES
HEALTH SECTOR
HEALTH SERVICE
HEALTH SERVICE UTILIZATION
HEALTH SERVICES
HEALTH STATUS
HEALTH STRATEGY
HOUSEHOLD INCOME
HOUSEHOLD SIZE
HOUSEHOLD SURVEYS
HUMAN CAPITAL
HUMAN DEVELOPMENT
HUMAN RESOURCES
HYGIENE
ILLITERACY
ILLNESS
IMPACT ON HEALTH
INCOME EFFECT
INCOME LEVELS
INFANT
INFANT DEATHS
INFANT MORTALITY
INFANT MORTALITY RATE
INFANT MORTALITY RATES
INTEREST RATE
INTERNATIONAL JOURNAL OF EPIDEMIOLOGY
INTERVENTION
INVESTMENTS IN EDUCATION
LABOR MARKET
LABOR PRODUCTIVITY
LAM
LATIN AMERICAN
LEVELS OF CONSUMPTION
LIVE BIRTHS
LIVING STANDARDS
LOW BIRTH WEIGHT
MACROECONOMIC EVENTS
MALARIA
MARGINAL PRODUCT
MARGINAL PRODUCTIVITY
MARGINAL UTILITY
MEDICINES
MENTAL
MENTAL HEALTH
MORBIDITY
MORTALITY
MOSQUITO NETS
MOTHER
NATURAL DISASTERS
NEGATIVE EXTERNALITIES
NUMBER OF CHILDREN
NUTRITION
NUTRITIONAL STATUS
OBESITY
OLDER AGE GROUPS
OPPORTUNITY COST
PACIFIC REGION
PARENTING
PEDIATRICS
PER CAPITA INCOME
PLACE OF RESIDENCE
POLICY IMPLICATIONS
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POLITICAL ECONOMY
POLLUTION
POOR HOUSEHOLDS
POOR PEOPLE
POPULATION CENSUS
POPULATION GROUPS
POSITIVE EFFECTS
PREGNANCY
PREGNANT WOMEN
PRENATAL CARE
PREVENTIVE HEALTH CARE
PRICE FLUCTUATIONS
PRICE INCREASES
PRIMARY SCHOOL
PRIMARY SCHOOL AGE
PRIMARY SCHOOLING
PROBABILITY
PRODUCTION FUNCTION
PROGRESS
PUBLIC EDUCATION
PUBLIC HEALTH
PUBLIC HEALTH EXPENDITURES
PUBLIC HEALTH SPENDING
PUBLIC POLICY
PUBLIC SERVICES
QUALITY OF EDUCATION
REAL WAGES
RECESSION
RICHER COUNTRIES
RURAL AREAS
SAFETY
SAFETY NETS
SCHOOL ATTENDANCE
SCHOOL QUALITY
SCHOOL YEAR
SECONDARY SCHOOL
SECONDARY SCHOOLING
SERVICE UTILIZATION
SKILLED WORKERS
SMOKING
SOCIOECONOMIC STATUS
STATE UNIVERSITY
SUB-SAHARAN AFRICA
SUBSTITUTION EFFECT
TEACHER SALARIES
UNEMPLOYMENT
UNEMPLOYMENT RATE
URBAN AREAS
UTILITY FUNCTION
UTILITY MAXIMIZATION
VULNERABILITY
VULNERABLE GROUPS
WAGES
WEALTH
WORKERS
WORKFORCE
YOUNG ADULTS
YOUNG CHILDREN
spellingShingle ABSENTEEISM
ACCOUNTING
ADOLESCENTS
ADULT HEALTH
ADULT MORTALITY
AGED
AIR POLLUTION
BABIES
BREASTFEEDING
BULLETIN
CAPITAL INVESTMENTS
CD
CHILD CARE
CHILD HEALTH
CHILD LABOR
CHILD MORTALITY
CHILD NUTRITION
CHILD SURVIVAL
CIVIL WAR
CONSUMPTION LEVELS
CRISES
CULTURAL CHANGE
DEMAND CURVE
DEPRESSION
DEVELOPING COUNTRIES
DEVELOPMENT ECONOMICS
DISASTERS
DISCOUNT RATE
DISEASES
EARLY CHILDHOOD
ECONOMETRIC ANALYSIS
ECONOMIC CONDITIONS
ECONOMIC CRISES
ECONOMIC DOWNTURNS
ECONOMIC FLUCTUATIONS
ECONOMICS
ECONOMICS OF EDUCATION
EDUCATED WOMEN
EDUCATIONAL ATTAINMENT
ELDERLY
EPIDEMIOLOGY
ESSENTIAL COMMODITIES
EXPECTED RETURNS
EXPECTED VALUE
EXPENDITURES
EXTERNALITIES
FAMILIES
FAMILY MEMBERS
FERTILITY
FINANCIAL CRISIS
FINANCIAL SECTOR
FUTURE RESEARCH
GDP
GDP PER CAPITA
GENDER DIFFERENCES
GROWTH RATE
HEALTH CARE
HEALTH ECONOMICS
HEALTH EFFECTS
HEALTH IMPACTS
HEALTH INDICATORS
HEALTH INVESTMENTS
HEALTH OUTCOMES
HEALTH SECTOR
HEALTH SERVICE
HEALTH SERVICE UTILIZATION
HEALTH SERVICES
HEALTH STATUS
HEALTH STRATEGY
HOUSEHOLD INCOME
HOUSEHOLD SIZE
HOUSEHOLD SURVEYS
HUMAN CAPITAL
HUMAN DEVELOPMENT
HUMAN RESOURCES
HYGIENE
ILLITERACY
ILLNESS
IMPACT ON HEALTH
INCOME EFFECT
INCOME LEVELS
INFANT
INFANT DEATHS
INFANT MORTALITY
INFANT MORTALITY RATE
INFANT MORTALITY RATES
INTEREST RATE
INTERNATIONAL JOURNAL OF EPIDEMIOLOGY
INTERVENTION
INVESTMENTS IN EDUCATION
LABOR MARKET
LABOR PRODUCTIVITY
LAM
LATIN AMERICAN
LEVELS OF CONSUMPTION
LIVE BIRTHS
LIVING STANDARDS
LOW BIRTH WEIGHT
MACROECONOMIC EVENTS
MALARIA
MARGINAL PRODUCT
MARGINAL PRODUCTIVITY
MARGINAL UTILITY
MEDICINES
MENTAL
MENTAL HEALTH
MORBIDITY
MORTALITY
MOSQUITO NETS
MOTHER
NATURAL DISASTERS
NEGATIVE EXTERNALITIES
NUMBER OF CHILDREN
NUTRITION
NUTRITIONAL STATUS
OBESITY
OLDER AGE GROUPS
OPPORTUNITY COST
PACIFIC REGION
PARENTING
PEDIATRICS
PER CAPITA INCOME
PLACE OF RESIDENCE
POLICY IMPLICATIONS
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POLITICAL ECONOMY
POLLUTION
POOR HOUSEHOLDS
POOR PEOPLE
POPULATION CENSUS
POPULATION GROUPS
POSITIVE EFFECTS
PREGNANCY
PREGNANT WOMEN
PRENATAL CARE
PREVENTIVE HEALTH CARE
PRICE FLUCTUATIONS
PRICE INCREASES
PRIMARY SCHOOL
PRIMARY SCHOOL AGE
PRIMARY SCHOOLING
PROBABILITY
PRODUCTION FUNCTION
PROGRESS
PUBLIC EDUCATION
PUBLIC HEALTH
PUBLIC HEALTH EXPENDITURES
PUBLIC HEALTH SPENDING
PUBLIC POLICY
PUBLIC SERVICES
QUALITY OF EDUCATION
REAL WAGES
RECESSION
RICHER COUNTRIES
RURAL AREAS
SAFETY
SAFETY NETS
SCHOOL ATTENDANCE
SCHOOL QUALITY
SCHOOL YEAR
SECONDARY SCHOOL
SECONDARY SCHOOLING
SERVICE UTILIZATION
SKILLED WORKERS
SMOKING
SOCIOECONOMIC STATUS
STATE UNIVERSITY
SUB-SAHARAN AFRICA
SUBSTITUTION EFFECT
TEACHER SALARIES
UNEMPLOYMENT
UNEMPLOYMENT RATE
URBAN AREAS
UTILITY FUNCTION
UTILITY MAXIMIZATION
VULNERABILITY
VULNERABLE GROUPS
WAGES
WEALTH
WORKERS
WORKFORCE
YOUNG ADULTS
YOUNG CHILDREN
Ferreira, Francisco H.G.
Schady, Norbert
Aggregate Economic Shocks, Child Schooling and Child Health
relation Policy Research Working Paper No. 4701
description Do aggregate economic shocks, such as those caused by macroeconomic crises or droughts, reduce child human capital? The answer to this question has important implications for public policy. If shocks reduce investments in children, they may transmit poverty from one generation to the next. This paper uses a simple framework to analyze the effects of aggregate economic shocks on child schooling and health. It shows that the expected effects are ambiguous, because of a tension between income and substitution effects. The paper then reviews the recent empirical literature on the subject. In richer countries, like the United States, child health and education outcomes are counter-cyclical: they improve during recessions. In poorer countries, mostly in Africa and low-income Asia, the outcomes are pro-cyclical: infant mortality rises, and school enrollment and nutrition fall during recessions. In the middle-income countries of Latin America, the picture is more nuanced: health outcomes are generally pro-cyclical, and education outcomes counter-cyclical. Each of these findings is consistent with the simple conceptual framework. The paper discusses possible implications for expenditure allocation.
format Publications & Research :: Policy Research Working Paper
author Ferreira, Francisco H.G.
Schady, Norbert
author_facet Ferreira, Francisco H.G.
Schady, Norbert
author_sort Ferreira, Francisco H.G.
title Aggregate Economic Shocks, Child Schooling and Child Health
title_short Aggregate Economic Shocks, Child Schooling and Child Health
title_full Aggregate Economic Shocks, Child Schooling and Child Health
title_fullStr Aggregate Economic Shocks, Child Schooling and Child Health
title_full_unstemmed Aggregate Economic Shocks, Child Schooling and Child Health
title_sort aggregate economic shocks, child schooling and child health
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2008/08/9794819/aggregate-economic-shocks-child-schooling-child-health
http://hdl.handle.net/10986/6790
_version_ 1764401086831001600
spelling okr-10986-67902021-04-23T14:02:32Z Aggregate Economic Shocks, Child Schooling and Child Health Ferreira, Francisco H.G. Schady, Norbert ABSENTEEISM ACCOUNTING ADOLESCENTS ADULT HEALTH ADULT MORTALITY AGED AIR POLLUTION BABIES BREASTFEEDING BULLETIN CAPITAL INVESTMENTS CD CHILD CARE CHILD HEALTH CHILD LABOR CHILD MORTALITY CHILD NUTRITION CHILD SURVIVAL CIVIL WAR CONSUMPTION LEVELS CRISES CULTURAL CHANGE DEMAND CURVE DEPRESSION DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DISASTERS DISCOUNT RATE DISEASES EARLY CHILDHOOD ECONOMETRIC ANALYSIS ECONOMIC CONDITIONS ECONOMIC CRISES ECONOMIC DOWNTURNS ECONOMIC FLUCTUATIONS ECONOMICS ECONOMICS OF EDUCATION EDUCATED WOMEN EDUCATIONAL ATTAINMENT ELDERLY EPIDEMIOLOGY ESSENTIAL COMMODITIES EXPECTED RETURNS EXPECTED VALUE EXPENDITURES EXTERNALITIES FAMILIES FAMILY MEMBERS FERTILITY FINANCIAL CRISIS FINANCIAL SECTOR FUTURE RESEARCH GDP GDP PER CAPITA GENDER DIFFERENCES GROWTH RATE HEALTH CARE HEALTH ECONOMICS HEALTH EFFECTS HEALTH IMPACTS HEALTH INDICATORS HEALTH INVESTMENTS HEALTH OUTCOMES HEALTH SECTOR HEALTH SERVICE HEALTH SERVICE UTILIZATION HEALTH SERVICES HEALTH STATUS HEALTH STRATEGY HOUSEHOLD INCOME HOUSEHOLD SIZE HOUSEHOLD SURVEYS HUMAN CAPITAL HUMAN DEVELOPMENT HUMAN RESOURCES HYGIENE ILLITERACY ILLNESS IMPACT ON HEALTH INCOME EFFECT INCOME LEVELS INFANT INFANT DEATHS INFANT MORTALITY INFANT MORTALITY RATE INFANT MORTALITY RATES INTEREST RATE INTERNATIONAL JOURNAL OF EPIDEMIOLOGY INTERVENTION INVESTMENTS IN EDUCATION LABOR MARKET LABOR PRODUCTIVITY LAM LATIN AMERICAN LEVELS OF CONSUMPTION LIVE BIRTHS LIVING STANDARDS LOW BIRTH WEIGHT MACROECONOMIC EVENTS MALARIA MARGINAL PRODUCT MARGINAL PRODUCTIVITY MARGINAL UTILITY MEDICINES MENTAL MENTAL HEALTH MORBIDITY MORTALITY MOSQUITO NETS MOTHER NATURAL DISASTERS NEGATIVE EXTERNALITIES NUMBER OF CHILDREN NUTRITION NUTRITIONAL STATUS OBESITY OLDER AGE GROUPS OPPORTUNITY COST PACIFIC REGION PARENTING PEDIATRICS PER CAPITA INCOME PLACE OF RESIDENCE POLICY IMPLICATIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL ECONOMY POLLUTION POOR HOUSEHOLDS POOR PEOPLE POPULATION CENSUS POPULATION GROUPS POSITIVE EFFECTS PREGNANCY PREGNANT WOMEN PRENATAL CARE PREVENTIVE HEALTH CARE PRICE FLUCTUATIONS PRICE INCREASES PRIMARY SCHOOL PRIMARY SCHOOL AGE PRIMARY SCHOOLING PROBABILITY PRODUCTION FUNCTION PROGRESS PUBLIC EDUCATION PUBLIC HEALTH PUBLIC HEALTH EXPENDITURES PUBLIC HEALTH SPENDING PUBLIC POLICY PUBLIC SERVICES QUALITY OF EDUCATION REAL WAGES RECESSION RICHER COUNTRIES RURAL AREAS SAFETY SAFETY NETS SCHOOL ATTENDANCE SCHOOL QUALITY SCHOOL YEAR SECONDARY SCHOOL SECONDARY SCHOOLING SERVICE UTILIZATION SKILLED WORKERS SMOKING SOCIOECONOMIC STATUS STATE UNIVERSITY SUB-SAHARAN AFRICA SUBSTITUTION EFFECT TEACHER SALARIES UNEMPLOYMENT UNEMPLOYMENT RATE URBAN AREAS UTILITY FUNCTION UTILITY MAXIMIZATION VULNERABILITY VULNERABLE GROUPS WAGES WEALTH WORKERS WORKFORCE YOUNG ADULTS YOUNG CHILDREN Do aggregate economic shocks, such as those caused by macroeconomic crises or droughts, reduce child human capital? The answer to this question has important implications for public policy. If shocks reduce investments in children, they may transmit poverty from one generation to the next. This paper uses a simple framework to analyze the effects of aggregate economic shocks on child schooling and health. It shows that the expected effects are ambiguous, because of a tension between income and substitution effects. The paper then reviews the recent empirical literature on the subject. In richer countries, like the United States, child health and education outcomes are counter-cyclical: they improve during recessions. In poorer countries, mostly in Africa and low-income Asia, the outcomes are pro-cyclical: infant mortality rises, and school enrollment and nutrition fall during recessions. In the middle-income countries of Latin America, the picture is more nuanced: health outcomes are generally pro-cyclical, and education outcomes counter-cyclical. Each of these findings is consistent with the simple conceptual framework. The paper discusses possible implications for expenditure allocation. 2012-05-31T19:57:22Z 2012-05-31T19:57:22Z 2008-08 http://documents.worldbank.org/curated/en/2008/08/9794819/aggregate-economic-shocks-child-schooling-child-health http://hdl.handle.net/10986/6790 English Policy Research Working Paper No. 4701 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research