The costs of consumption smoothing: less schooling and less nutrition. (September 2019)

• Record Type: Journal Article
• Authors: De Magalhães, Leandro; Koh, Dongya; Santaeulàlia-Llopis, Räul
• Is Part Of: Journal of demographic economics. Volume 85:Number 3(2019)
• Page Start: 181
• Page End: 208
• Publication Date: 2019-09
• Subjects: Consumption, -- lifecycle, -- nutrition, -- schooling, -- self-farming, -- smoothing, -- Sub-Saharan Africa; E21, -- O11, -- R20; Demography -- Economic aspects -- Periodicals; Population -- Economic aspects -- Periodicals; 304.605
• DOI: 10.1017/dem.2019.7
• Languages: English
• ISSNs: 2054-0892

Abstract

Abstract: 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.