Parental risk aversion and educational investment: panel evidence from rural Uganda

  • Rayner TabetandoEmail author


In this paper we combine a unique large scale field experimental data on preferences and longitudinal household survey data from rural Uganda to estimate the impact of parental risk aversion, time preferences and loss aversion on educational investment. Our results show that parental risk aversion is increasing in wealth. On a whole, we find that risk aversion is positively correlated with educational investment measured in per school age child educational expenditure. Further analysis revealed that parental risk aversion is negatively associated with educational investment for poorer households. Pathway analysis suggests that risk averse households are less credit constrained. The hypothesis that parental risk aversion depresses educational investment may only be tenable for poor households’ in rural Uganda.


Risk attitude Time preference Experiment Education Sub-Saharan Africa 

JEL Classification

J62 J38 



I hereby declare that this work did not benefit from any funding except the personal funds of the researcher. I will like to thank the National Graduate Institute for Policy Studies for granting me access to the data used in this study.

Compliance with ethical standards

Conflict of interest

The authors declare that they have no conflict of interest.

Ethical approval

All procedures performed in studies involving human participants were in accordance with the ethical standards of the institutional and/or national research committee and with the 1964 Helsinki declaration and its later amendments or comparable ethical standards.


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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018

Authors and Affiliations

  1. 1.National Graduate Institute for Policy StudiesTokyoJapan
  2. 2.JICA Research InstituteTokyoJapan

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