Effects of asset ownership on child health indicators and educational performance in Tanzania

Abstract

Using a nationally representative data from 3 waves of Tanzania National Panel Survey (TZNPS), we estimate the effects of household asset ownership and community assets on educational and health outcomes of children. We start with a simple modification of the quantity-quality tradeoff model to show a theoretical relationship between assets and child outcomes. Empirically, using the panel data random effects models, we are able to establish a causal relationship between child wellbeing and asset ownership. After controlling for household income proxied by current consumption, we find that assets have significant effects on both educational and health outcomes of children. Although assets have positive effects on child health outcomes, effect on educational outcome is asset specific. Household and community assets have positive effects on child educational performance but agricultural assets have adverse effects. JEL codes: I15, I25