Investing in the Next Generation: The Long-Run Impacts of a Liquidity Shock

• 成果类型: Article
• 署名作者: Agte, Patrick; Bernhardt, Arielle; Field, Erica; Pande, Rohini; Rigol, Natalia
• 署名单位: Yale University; New York University; Duke University; Harvard University
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20220296
• 发表日期: 2024
• 页码: 2792-2824
• 关键词: intergenerational mobility; parental education; PERCEIVED RETURNS; term impacts; GENDER; POLICY; PARTICIPATION; school; time

摘要

Poor entrepreneurs must frequently choose between business investment and children's education. To examine this trade-off, we exploit experimental variation in short-run microenterprise growth among a sample of Indian households and track schooling and business outcomes over eleven years. Treated households, who experience higher initial microenterprise growth, are on average one-third more likely to send children to college. However, educational investment and schooling gains are concentrated among literate-parent households, whose enterprises eventually stagnate. In contrast, illiterate-parent households experience long-run business gains but declines in children's education. Our findings suggest that microenterprise growth has the potential to reduce relative intergenerational educational mobility. ( JEL I21, I26, I32, J13, L25, L26, O12) )