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Citation Information

Type Thesis or Dissertation - Master of Arts in Development studies
Title Education in time of economic crisis: Effects of the Global Financial Crisis on Childrens Education in
Publication (Day/Month/Year) 2012
URL http://thesis.eur.nl/pub/13075/Ana Lucia Badillo Salgado_Final RP_1611.pdf
This paper analyzes the short-run effects of the global financial crisis of 2008-2009 on
schooling outcomes for children aged 5-14 and 15-17 in Ecuador. We estimate linear
probability models using repeated cross-sectional samples of the annual nationally
representative employment, unemployment and underemployment household survey over
the period of 2004-2010. The study reveals that the global crisis did not affect children´s school
enrollment and attendance, but it shifted enrollment towards public schools. We also explore
one of the main transmission channels of the global crisis for Ecuador: remittances. We find
that the reduction in remittances during the crisis is not associated with decreases in
enrollment and attendance for either of the two age groups. Nevertheless, we observe that
the fall in remittances affected the choice of school type. In particular, we find that the drop in
remittances led to changes from private to public schools for younger children, but not for
older children. This suggests that investments in education of older children were protected
during the time of the crisis at the expenses of the quality of education of younger children.
Several robustness tests and sensitivity analyses were carried out, including a placebo or
falsified shock and estimates controlling for the major social protection and education policy in

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