The costs of consumption smoothing: less schooling and less nutrition

L De Magalhães, D Koh… - Journal of Demographic …, 2019 - cambridge.org
Journal of Demographic Economics, 2019cambridge.org
Using novel microdata, we explore lifecycle consumption in Sub-Saharan Africa. We find
that households' ability to smooth consumption over the lifecycle is large, particularly, in rural
areas. Consumption in old age is sustained by shifting to self-farmed staple food, as
opposed to traditional savings mechanisms or food gifts. This smoothing strategy indicates
two important costs. The first cost is a loss of human capital as children seem to be diverted
away from school and into producing self-farmed food. Second, a diet largely concentrated …
Using novel microdata, we explore lifecycle consumption in Sub-Saharan Africa. We find that households' ability to smooth consumption over the lifecycle is large, particularly, in rural areas. Consumption in old age is sustained by shifting to self-farmed staple food, as opposed to traditional savings mechanisms or food gifts. This smoothing strategy indicates two important costs. The first cost is a loss of human capital as children seem to be diverted away from school and into producing self-farmed food. Second, a diet largely concentrated in staple food (e.g., maize in Malawi) in old age results in a loss of nutritional quality for households headed by the elderly.
Cambridge University Press
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