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Commodity Price Shocks and Child Outcomes: The 1990 Cocoa Crisis in Côte d’Ivoire

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Date
2012
Dewey
Croissance et développement économiques
Sujet
Education; Health; Commodity prices; Child Labor; Agriculture; Africa
JEL code
I.I1.I12; I.I2.I21; O.O1.O12
Journal issue
Economic Development and Cultural Change
Volume
60
Number
3
Publication date
2012
Article pages
507-534
Publisher
University of Chicago Press
DOI
http://dx.doi.org/10.1086/664017
URI
https://basepub.dauphine.fr/handle/123456789/10603
Collections
  • LEDa : Publications
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Author
Cogneau, Denis
11609 Institut de Recherche pour le Développement (IRD)
Jedwab, Rémi
1312 Paris-Jourdan Sciences Economiques [PJSE]
Type
Article accepté pour publication ou publié
Abstract (EN)
We look at the drastic cut of the administered cocoa producer price in 1990 Côte d'Ivoire and study to which extent cocoa producers' children su®ered from this severe aggregate shock in terms of school enrollment, labor, height stature and morbidity. Using pre-crisis (1985-88) and post- crisis (1993) data, we propose a di®erence-in-di®erence strategy to identify the causal e®ect of the cocoa shock on child outcomes, whereby we compare children of cocoa-producing households and children of other farmers living in the same district or the same village. This causal e®ect is shown to be rather strong for the four child outcomes we examine. Hence human capital investments are de¯nitely procyclical in this context. We also argue that the di®erence-in-di®erence variations can be interpreted as private income e®ects, likely to derive from tight liquidity constraints.

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