Mussa, Essa Chanie: Long-term effects of childhood work on human capital formation, migration decisions, and earnings in rural Ethiopia. - Bonn, 2018. - Dissertation, Rheinische Friedrich-Wilhelms-Universität Bonn.
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author = {{Essa Chanie Mussa}},
title = {Long-term effects of childhood work on human capital formation, migration decisions, and earnings in rural Ethiopia},
school = {Rheinische Friedrich-Wilhelms-Universität Bonn},
year = 2018,
month = oct,

note = {In Ethiopia, a quarter of children are child laborers, of which one in every three works full-time. Currently, more children than ever before also combine schooling with work. In addition, although net primary school enrollment increased three-fold—to almost 90 percent over the last decade, more than half of these children drop out of school to join the labor market before completing their primary education. As a result, lower educational attainment, high illiteracy rates, and low technical skills continue to characterize the Ethiopian labor force. Lower human capital has also hampered the development in the rural and agricultural sector, which employs about three-quarters of the labor force. Therefore, this study examines the consequences of childhood work participation on children's long-term human capital formation (schooling progression), their migration decisions, and adulthood earnings in rural Ethiopia. In so doing, it contributes to a very limited literature on the long-term penalties of childhood work on outcomes later in life from a developing country perspective.
This study uses a long-term panel dataset from five rural districts, collected in two survey waves: A baseline survey in 1999/2000 and a follow-up survey, 16 years later in 2015/2016. The random-effects Poisson model is used to analyze the effects of childhood work on children's long-term schooling progression, measured by the completed years of education. The findings show that full-time childhood work impedes long-term human capital formation, while in contrast, multitasking children (those who combined childhood work and school attendance) have attained more than twice as many years of schooling as their peers who worked full-time. The results also suggest that childhood work—excepting excessive, exclusive, and the worst forms of child labor—could be combined complementarily with child schooling to foster the long-term progression in human capital formation. However, these effects are heterogeneous according to child gender and childhood work type. Furthermore, using a doubly robust estimation method, the study also finds that full-time childhood work may limit the likelihoods of children's long-term village out-migration prospect compared to childhood educated peers. The results indicate that while those who worked exclusively during childhood are likely to be subsistence farmers when adults, schoolchildren tend to out-migrate in order to seek employment in non-farm jobs. In this regard, it was found that about 42, 34, and 24 percent of multitasking, school-only, and full-time childhood working children, respectively, currently work in non-farm jobs. Finally, using three-stage least squares approach, the estimates show that an extra one hour of childhood work per week could boost adulthood earnings by as much as 13.8 percent. The effects, however, exhibit diminishing returns when childhood work is more than five hours per day. Moreover, compared to schoolchildren, full-time childhood laborers earn, on average, 54.4 percent lower income in the adult labor markets. In indentifying the causal mechanisms, the study shows that childhood work may affect earnings through its effects on the probabilities of completing primary education and mobility to non-farming jobs later in life.
The findings suggest that eliminating full-time childhood work should be at the core of the country's human capital development policy. In order to cut dropouts before completing primary education, compulsory school enrollment for all school-aged children should be combined with continued support to children and parents. Conditional incentives such as education subsidies and school feeding programs could be tied with child's school enrollment and continued attendance.},

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