Selling Crops Early to Pay for School

Abstract

In 2010, primary school in Malawi began in September, three months earlier than in 2009. I show that this change forced households to sell crops early, when prices are low. The effect is limited to households with school children, increases with the number of children, and is present only for poor households. Households that financed school by selling early missed out on an expected 17.3–26.5 percent increase in output prices over three months. There is little evidence of improved schooling outcomes as a result of the change. I discuss the implications for policies that offer farmers commitment opportunities at harvest.