This paper studies the effects of orphanhood on health and education outcomes of children in Tanzania. Using an original dataset on members of the extended family networks of orphaned children, I assess by how much the effects of orphanhood are reduced due to a systematic placement of the orphans within the family network. I find that orphanhood has significant negative impacts on female orphans` welfare in terms of health and education, not however for male orphans. I then provide evidence that the selection of caretakers reduces the negative impact of orphanhood on years of education by one year relative to caretaking by the average family within the family network.
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