The impact of drought on human capital in rural India

We study the impact of a severe drought on children's educational outcomes in rural Maharashtra, a state in central India. Using pooled cross section data on children's test scores, we employ a difference-in-differences methodology to estimate the impact. We find that the drought caused a...

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Bibliographic Details
Published in:Environment and development economics 2019-08, Vol.24 (4), p.413-436
Main Author: Joshi, Kuhu
Format: Article
Language:English
Subjects:
Agricultural production
Agriculture
Cereals
Children
Consumption
Data analysis
Drought
Earth science
Economic models
Education
Environmental impact
Heterogeneity
Households
Human capital
Natural disasters
Oilseeds
Opportunity costs
Parents
Precipitation
Rain
RESEARCH ARTICLE
Rural areas
Sugarcane
Water shortages
Wealth
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Summary:We study the impact of a severe drought on children's educational outcomes in rural Maharashtra, a state in central India. Using pooled cross section data on children's test scores, we employ a difference-in-differences methodology to estimate the impact. We find that the drought caused a decline of 4.14 per cent in math scores and 2.67 per cent in reading scores of affected children. We also study heterogeneity in the impact by gender, age, parents' schooling, and household wealth, finding evidence in support of an income effect whereby households with limited means to smooth consumption disinvest in their children in response to the drought.
ISSN:1355-770X
1469-4395
DOI:10.1017/S1355770X19000123