AGRICULTURAL INCOME AND CHILDREN'S EDUCATION IN RURAL INDIAN HOUSEHOLDS

Abstract

More than 60% of India's rural households depend on agriculture. Therefore, income from farming is dependent on receiving timely rain. In this study, we look at the effect of shocks to agricultural income on education expenditure for school going children. Using India Human Development Survey, a multi-topic survey of more than 41,000 households, we study the impact of deviation in rainfall on education expenditure. Contrary to expectations, a positive income shock reduces expenditure on education for both boys and girls with a steeper decline for girls. Children spend more days on farm work when there’s higher rainfall. However, enrolment rates are not affected. This indicates that although children continue to be enrolled in school, they spend more time in the field helping with the bumper harvest. We also show that brahmins and upper castes respond differently to a rainfall shock than other backward classes and scheduled castes.