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IZA Discussion Paper No. 5326
November 2010
Child Ability and Household Human Capital Investment Decisions in Burkina Faso

published in: Economic Development and Cultural Change, 2012, 61 (1), 157-186

Using data we collected in rural Burkina Faso, we examine how children's cognitive abilities influence resource constrained households' decisions to invest in their education. We use a direct measure of child ability for all primary school-aged children, regardless of current school enrollment. We explicitly incorporate direct measures of the ability of each child's siblings (both absolute and relative measures) to show how sibling rivalry exerts an impact on the parent's decision of whether and how much to invest in their child’s education. We find children with one standard deviation higher own ability are 16 percent more likely to be currently enrolled, while having a higher ability sibling lowers current enrollment by 16 percent and having two higher ability siblings lowers enrollment by 30 percent. Results are robust to addressing the potential reverse causality of schooling influencing child ability measures and using alternative cognitive tests to measure ability.

Communications
Mark Fallak
mark.fallak@liser.lu
+352 585-855-526
World of Labour
Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
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Christina Gathmann
christina.gathmann@liser.lu

The IZA@LISER Network is a global community of scholars dedicated to excellence in labor economics and related fields, now coordinated at the Luxembourg Institute of Socio-Economic Research (LISER) following its transition from Bonn.

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