Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/177037 
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers No. 11233
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This analysis is motivated by recognition that anti-poverty interventions often affect both the level and composition of assets held by beneficiaries. To assess the conventional view that assets uniformly improve childhood development through wealth effects, we use three waves of panel data from Tanzania and test whether different types of assets have differential effects on children's educational outcomes. Our results indicate that household durables and housing quality have positive effects, but agricultural assets have adverse effects on children's highest grade completed and exam performances. We use a Hausman-Taylor instrumental variable (HTIV) panel data estimator to identify the effects of both time-varying and time-invariant endogenous variables. We find that the negative effect of agricultural assets is driven by large agricultural equipment and livestock ownership and the negative effect is more pronounced among rural children, poor children, and children from farming households, presumably due to the higher opportunity cost of schooling.
Subjects: 
highest grade completed
child education
asset ownership
Tanzania
LSMS-ISA
school performance
JEL: 
I25
J22
D13
O12
Document Type: 
Working Paper

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