tThis article asks how household income affects household investmentsin child schooling and health in developing countries. In particular, welook at three outcomes: school attendance, child anthropometric status and child health condition. Using Ivorian data from the 1985-1988 Côte d’Ivoire Living Standards Survey and the 1993 and 1998 Enquêtes Prioritaires, we are able to develop an instrumentation strategy that identifies the causal effect of income. Ultimately, we find that household income has a strong impact on the three variables we examine.