GRIPS 政策研究センター Policy Research Center

客員研究員

Jan 27, 2015 Report No:14-24

Risk and Time Preference on Schooling: Experimental Evidence from a Low-Income Country

Author
  • Yuki TanakaGRIPS
  • Takashi YamanoInternational Rice Research Institute
Field Economics
Language English
Abstract

Educational investment involves risks and long-term commitment, and the degree of risk aversion or patience of parents could play a vital role in the schooling decision. Yet, there are few studies analyzing the impact of such preferences on educational investment. This paper utilizes a unique dataset with a large-scale field experiment of preferences and estimates the impacts of the patience and risk aversion of the parents on school attendance, delayed enrollment, and the education expenditure of their children in Uganda. Our results show that the risk aversion of the parent delays enrollment of young children, especially boys. This could be explained by parents’ security concerns for their young children. Girls of impatient parents have high attendance rates when they are young (6 – 9 years old) but have low attendance rates when they are older (10 – 13 years old). Boys aged 10 to 13 have low attendance rates if their parents have a high present bias. Finally, the patience of the parents increases the education expenditure.

Keywords Risk attitude, time preference, experiment, education, Sub-Saharan Africa
attachment 14-24.pdf