2018-2 School or work ? The role of weather shocks in Madagascar

It follows that the better the functioning of the agricultural labor market (and so, the greater the integration to the labor market), the lower the indirect effect (tending toward zero). [...] In particular, consistent with the theoretical framework discussed previously in the article, we control for the transaction costs (the presence of a paved road in the village and the quality of land are proxies for these costs) and introduce factors influencing the shadow price of schooling (such as the father’s and mother’s education levels and health and working statuses, as well as the number. [...] What is interesting is that the addition of the lagged rainfall variable and the interaction with the asset index do not affect the significance or magnitude of the contemporaneous effect. [...] The sign, significance, and magnitude of the contemporaneous and lagged effects are very similar, and this is also applied to the interaction between lagged rainfall and assets.xxi In Table 2 we present the marginal effects, based on the specification in the last column in Table 1, to gain insight into the magnitude of the impacts of cyclones and lagged and current r. [...] In another specification (column 6), we exclude from the sample those individuals who migrated from the community where they lived in 2004.xxiii The reason for this exclusion is that the community variables that we introduced in the model—the presence of schools and the type of land—are from the community where the individual lived in 2004.