Persistent Agricultural Shocks and Child Poverty: Evidence from Ethiopia

Ashish K. Sedai, Lackson D. Mudenda and Ray Miller

CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University

Abstract: This study shows how persistent agricultural shocks in Ethiopia affect education, health and labour outcomes through a time-use study of young people, aged 0-22. Leveraging five rounds of the Young Lives Study from 2002-2016, we use dynamic panel instrumental variable regressions to account for the unobserved heterogeneity and serial correlation in the estimation of persistent shocks. Agricultural shocks significantly reduce schooling participation and time spent in schooling, deteriorate health, and increase both labour force participation and labour time. Household wealth acts as a buffer and mitigates the adverse effects of shocks on schooling. Interestingly, children from wealthier households have a higher likelihood of joining agricultural labour during shocks, but their intensity of child labour is significantly lower compared to the poorer households. The study recommends agricultural insurance for the poor and incentives for school participation in areas susceptible to agricultural shocks.

Keywords: Agriculture; Shocks; Labour; Education; Wealth; Time Use (search for similar items in EconPapers)
JEL-codes: D13 I20 I25 I31 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2022-10
New Economics Papers: this item is included in nep-agr and nep-dev
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Persistent link: https://EconPapers.repec.org/RePEc:een:camaaa:2022-66

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