The consequences of orphanhood have been an important topic on the research agenda in recent years, particularly against the backdrop of the AIDS epidemic in Sub-Saharan Africa. Previous literature has highlighted negative effects on children from prime-age adult deaths in the house- hold. Some authors have however pointed out that the effects are small, possibly as a result of well-functioning coping mechanisms prevailing in the region. In this article, we investigate the links between deaths in the household and subsequent economic outcomes of children by exploiting an unusually rich dataset from Senegal. Along the lines of Case, Paxson and Ablei- dinger (2004), we test whether impacts on children differ according to the relationship with the deceased. We _nd evidence that this is the case: deaths in the household are not associated with diminished school presence for those children who are not under the direct responsibility of the deceased. It however has a strong signi_cant negative effect for those children who are. On the basis of our results, which include e_ects on child labor and fostering, we argue that in large and complex households, household budgetary arrangements are an essential part of the story that may well lead to a heterogeneous absorption of shocks among family members. As such, there seem to be limits to the much lauded African informal safety net.
