The Impact Of Household Participation In Off-farm Income Generating Activities On Children Educational Outcomes In Rural Ethiopia

This study investigates the impact of household participation in off-farm income generatingrnactivities on children’s educational outcomes in rural Ethiopia. The analysis uses Ethiopian Socioeconomicrnsurvey panel data collected in three periods (i.e. 2011/12, 2013/14, and 2015/16).rnPropensity Score Matching in combination with Difference-in-Difference (PSM-DID) estimatorrnwas applied to estimate effects. The results from probit model suggest that credit, household size,rnmean schooling of males and female, government and non-governmental assistance, children’srnlabor and age positively affected household’s participation in off-farm activities. Whereas, sex andrnage of head, livestock owned in TLU, covariate shocks and farm earning negatively affected offfarmrnparticipation. The results from matching with difference-in-difference suggests thatrnhousehold participation in off-farm activities had a negative impact on children’s educationalrnoutcomes such as highest grade completed, current enrollment and basic literacy skill of children.rnHousehold’s exit from off-farm activities significantly reduced proportion of children who absentrnfrom school and increased proportion of children who ever attended formal education.rnHousehold’s off-farm participation affects children’s educational outcomes through increasingrndemand of child labor in off-farm work. Higher proportion of children participated in off-farmrnactivities who lives with participated household’s compared to their counterparts. In addition, itrnmay increase demand of children’s work in farm for boys and home work for girls. The studyrnsuggests that incentivizing households for schooling their children instead of using their time onrnoff-farm activities should be considered. Incentives such as cash transfer, free supply ofrneducational materials such as pens, exercise books, school uniforms, cloths during a big holidaysrnsuch as New Year and Christmas should be given to children belonging to participant households.rnIn addition, Empowering rural households in obtaining sufficient income through promotingrnlivestock sector, expanding modern agricultural systems such as irrigation system, encouragingrncash crops production, and providing modern inputs such as improved seed and fertilizers, andrntractors need to be considered. Family planning policy should be worked widely as the family sizernhas negative impact on educational outcomes

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