Determinants of Child Schooling Progress in
Rural
Degnet Abebaw1,**,
Andinet Delelegn2 and Assefa Admassie3
1 Senior Researcher, Poverty and Human Resources Division, EEA/EEPRI
2 Assistant Researcher, Poverty and Human Resources Division, EEA/EEPRI.
3 Director, EEA/EEPRI.
Abstract
Despite rapid
expansion of primary enrollment in
JEL Classification: D13; I21; R21.
Keywords: child schooling progress; Poisson
regression;
1. Introduction
Education is a
process through which mankind transmit experience, new findings, and values
accumulated over time with the aim of enabling individuals and societies to
make all rounded participation in the development process. In this regard, education
plays a key role in enhancing economic progress, improving individual welfare
and social development (Hannum and Buchmann, 2005). Available evidence shows
that there are several channels through which such effects may arise. For
instance education raises labor productivity (Welch, 1970), increases
technological innovation and adaptation (Rodriguez and Wilson, 2000),
contributes to better health (World Bank, 1993) and gives greater ability to
deal with shocks (World Bank, 2001). As a result, education is to date a basic
ingredient for creating a competitive and knowledge based economy (Hanushek and
Kimko, 2000).
In recognition
of these multidimensional benefits, governments, international community and
development agencies have placed increasingly high attention on education
(Pritchett and Filmer, 1997). In fact, the United Nations World Conference of
Education in
Notwithstanding
the global agreement that ensuring UPE is desirable, there is wide disagreement
on how to achieve it. As a recent World Development Report (World Bank, 2004)
points out, even though expanding access is important it is not enough to
ensure that all children from different backgrounds are enrolled and progress is
made in the education system. In a recent study on possibilities of UPE for
Sub-Saharan Africa, Bennell (2002) has noted that in countries where poverty is
deep-rooted and education is de facto
non-compulsory, the supply of education may not create its own demand. This
means that apart from physical expansion of school infrastructure, context
specific policy measures are required to create effective demand for education
among poor households and individuals (Ray, 2003; Bedi and Marshal, 2002;
Al-Samarrai and Reilly, 2000).
In the
literature, child schooling has been extensively studied by several researchers
using different indicators. Many researchers use either current status of
enrollment (e.g. Cockburn and Dostie, 2007; Lire, 2005; Assefa, 2002), number
of school days attended in a reference period (e.g. DeGraff and Bilsborrow,
2003; Bedi and Marshal, 2002), or the last completed grade of schooling (e.g.
Ray, 2003; Tansel, 2002). However, as pointed out by Behrman and Knowles (1999,
p. 2175), relying on these indicators fails to account for “…the age of
starting school, grades passed per year in school, and performance on
examinations in the last completed grade”. In other words, these and similar
other studies do not explain cumulative education performance of children.
Some recent
studies, which have tried to fill this information gap, are found for
In this paper,
we build on the latter approach and try to examine whether and to what extent
rural Ethiopian children are able to keep up normal schooling progress in the
primary education system. More specifically, the study estimates the impact of
individual, parental, household and community factors on child educational
progress. The data used for the analysis were extracted from the two rounds of
the Ethiopian Rural Household Survey, conducted in 1997 and 2004 by the
Economics Department of Addis Ababa University in collaboration with the
The paper is
organized as follows. In Section 2, the paper presents background information
and problem statement. Review of the relevant literature is found in Section 3.
In Section 4, the paper outlines the theoretical framework. Data sources and
research methodology are discussed in Section 5. In Section 6, the paper
presents the descriptive and the analytical results and the discussions.
Finally, in Section 7, the paper provides conclusions and draws some policy
implications.
2. Background to the Ethiopian Education
System and the Problem Statement
In
Figure 1. Trends in Primary School Enrollment, 1998/99-2004/05

Despite various efforts taken by the Ethiopian government to increase coverage and equitable access to all children, the education system still faces several problems. According to UNESCO (2006), about 59% of the country’s adult population (15 years and over) is illiterate indicating insufficient access to education in the past. Available evidences also suggest that many children do not get the chance to be in school at an appropriate age at present. For instance, according to the MOE (2005), of the total children who enrolled in grade one in 2004/05 academic year, only about 60% are seven years of age. Given the low enrollment records and lack of access to schools in the past, the remaining (40%) of the current enrollees in grade one are older than seven years of age.
Apart from this,
children’s primary schooling in
As noted by
Bennell (2002) for many other Sub-Saharan countries, the high gross enrollment
figures in
The economic
literature on costs of late entry to school, grade repetition and delays in
grade completion are discussed by several authors (see for e.g. Behrman and
Knowles, 1999). By starting school late, a child encounters delays in
post-school returns. The cost of delayed schooling then equals the difference
in the present discounted value of future income with the delay and without the
delay. Late school entry is also a deterrent to full school participation
(Behrman and Knowles, 1999). A similar result has been reported by recent
empirical studies for Rural Tanzania (Bommier and Lambert, 2000; Burke and
Beegle, 2004),
Thus, there is
ample concern for seeking desired school progress corresponding to a child’s
age. Given the paucity of empirical studies on this subject in
3. Literature Review
Research on
child schooling is vast and this paper reviews only a limited part of it, which
is relevant for developing countries. Previous studies (e.g. Patrinos and
Psacharopoulos, 1997; Gitter and Barham, 2007; Jacoby and Skoufias, 1997; Bedi
and Marshall, 2002, Gitter and Barham, 2007; Lire, 2005; Assefa, 2002) find
several explanations for the inadequate schooling and educational attainments
of children particularly in developing countries of
Using a panel
data from
In a recent
study in
4. Theoretical Framework
The economic literature on schooling attainment has its root on human capital theory pioneered by Schulz (1960), Becker (1964), and Mencer (1974). According to this theory, investment in child schooling is justified by taking into account costs and returns of schooling. To put it another way, the level of schooling that parents choose for their children are determined by private marginal costs and benefits.
In
As previously
mentioned, schooling benefits include increased future earnings. Since costs of
and returns to current schooling decisions occur at different time periods, an
individual household invests on education of his/her family member as far as
expected returns are greater than costs. Following this notion, many authors
have researched schooling investments and its determinants both in developed
and developing countries.
From the
viewpoint of the Beckerian proposition, well-functioning markets (e.g. credit,
labor, etc) are required for individuals and families to acquire optimal level
of schooling. When these markets are absent or malfunctioning, individuals and
families may under-invest in education. In fact, as pointed out by several
authors markets are imperfect (de Janvry et
al., 1991) and as reported by several authors it is often difficult or is
impossible to borrow for human capital investments (Bardhan and Udry, 1999).
Recent empirical studies have also shown that investments on education are
hampered by credit market imperfections (see for e.g. Gitter and Barham, 2007;
Jacoby and Skoufias, 1997). Stated in other words, beside market factors, one’s
schooling decision is closely associated with household resource endowments
such as wealth and income (Berham and Knowles, 1999).
By embedding
human capital within Becker’s (1981) household production model, one obtains a
theoretical basis to evaluate determinants of investment on schooling. Assuming
that a parent’s main objective is to maximize expected utility function in
consumption and education over two-periods, subject to a full-income
constraints a reduced form schooling demand function can be specified as:
,
where,
is number of completed
grades by a school-age child in the family,
is a vector of market
wages for adults and children,
is a vector of expected
future earnings conditional on current enrollment,
is unearned income,
is a vector of child, parental and household characteristics,
and Z is a vector of community and regional factors.
5. Data and Empirical Model
5.1 Data Sources
The data used in
this study came from the Ethiopian Rural Household Survey (ERHS) collected by
the department of Economics,
The four regions included in the sample represent the main sedentary faming system in the country. The main farming systems found in the study areas include the plough-based cereals faming system of the Northern and Central Highlands, the Mixed Plough/Hoe Cereals Farming System and enset farming system in the southern parts of the country, and cash crop farming such as Chat[4] and coffee. Furthermore, sample size in each village was chosen so as to approximate a self-weighting sample, when considered in terms of the farming system.
The survey is aiming at generating a multi-purpose dataset comprising a range of household level demographic, consumption, education, health, income, and asset variables on one hand and, community, market and other infrastructural variables on the other hand during each survey period. The questionnaire is comprehensive in a way that there are a number of modules included in the questionnaire.
More
specifically, in this paper we use data from 2004 and 1997 ERHS. The 1997
survey data were specifically to control for initial socioeconomic differences
affecting child education. In fact, according to
5.2. Empirical Model and Hypotheses
In this section,
we specify the empirical model and identify important explanatory variables for
the empirical analysis. As mentioned previously, the main aim of the paper is
to identify the key determinants of child schooling progression in rural
The dependent
variable, which we want to explain in this paper is education gap,
, experienced by primary school-age rural children in
indicates a decline in
a child’s schooling progress. As specified below,
is measured by
matching grades completed by a child to the child’s current age (Patrinos and
Psacharopoulos, 1997). In notation, let
and
are, respectively, the
appropriate grade in relation to a child’s age and the actual grade completed
by a child in a household. To put it
another way,
is a desired level of schooling progress and can be computed
as difference between a child’s current age and official enrollment age as:
![]()
Then, the
dependent variable
, is constructed as follows:
.
As shown above,
the dependent variable stands for count of grades delayed and is a non-negative
integer. If a child enrolls at official entry age and keeps up normal progress
in school, then the value of
will be zero. However,
due to a variety of problems such as late entry, drop outs and grade failures,
will have a positive integer value. In other words, in such
circumstances children remain some grades behind the appropriate school level
for their age. Thus, modeling this kind of a dependent variable requires the use
of certain kind of count data models (see Cameron and Trivedi, 1998). In the
count data analysis, the probability that the
child is
grades behind a desired
grade in schooling can be expressed as:
.
In specifying
such a discrete probability function, a common starting point is to apply a
Poisson regression, which is a count data model. The Poisson model can be
specified as follows:
,
Where,
is the mean of the
distribution,
is a vector of Poisson
regression coefficients to be estimated and
. The exponential function has merit in that it restricts the
dependent variable to the non-negative range. In the statistics literature, the
model is also known as log-linear model since the logarithm of the conditional
mean is linear in parameters:
.
In the Poisson
model, it is assumed that the conditional mean,
, of the dependent variable given the exogenous variables is
equal to its variance, which is represented as follows:
.
To test this
assumption, Cameron and Tivedi’s (1990) regression approach can be used as
follows:
.
Here it is
important to note that a value of
, which is statistically different from zero is a sign of the
presence of either over-dispersion
or under-dispersion
in the data. To relax
this limitation, several approaches are proposed in the literature. Among
these, a Negative Binomial regression, which allows the conditional mean of the
dependent variable to exceed from the conditional variance have been widely
used (Cameron and Trivedi, 1998).
In Table 1, we
identify the main explanatory variables along with their anticipated impact on
the expected number of grades lag among primary school-age children in rural
areas of
In agrarian
societies, such as
Previous
empirical studies on the effect of the number of children on child schooling provide
mixed results. Empirical findings corroborate with two differing arguments. The
first is based on resource dilution hypothesis which says that as the number of
children in the household increases, the per capita schooling resources for
each child decreases. Consistent with this theory, Dayioglu, 2005) reports that
child labor increases with the number of children in the family. In a study of
Table 1:
Description of explanatory variables and their expected signs
|
Variables |
Type and measurement |
Data source (survey round) |
Expected signs |
|
Child characteristics |
|
|
|
|
SEXCH |
dummy
variable, 1 if child is boy |
2004 |
- |
|
AGECH |
age of child
in years |
2004 |
+ |
|
BOYS7-14 |
number of primary school age boys |
2004 |
-/+ |
|
GIRLS7-14 |
number of primary school age girls |
2004 |
-/+ |
|
Household characteristics |
|
|
|
|
SEXHH |
dummy
variable, 1 if household head is male |
2004 |
- |
|
AGEHH |
age of
household head in years |
2004 |
+ |
|
POVT |
dummy
variable, 1 if household was below poverty line, in adult equivalent units |
1997 |
+ |
|
PEDUCHH |
Dummy
variable,1 if household head has completed primary school or above |
2004 |
- |
|
PEDUCSP |
Dummy
variable,1 if spouse has completed primary school or above |
2004 |
- |
|
LnDURABLE |
Log of value
of household durables/assets in Ethiopian birr |
2004 |
- |
|
LnLAND |
Log of size of
landholding in hectares |
2004 |
+ |
|
CREDT97 |
dummy
variable, 1 if household had received credit from informal sources |
1997 |
-/+ |
|
REMIT97 |
dummy
variable, 1 if household had received remittance |
1997 |
-/+ |
|
Community characteristics |
|
|
|
|
PRIMSCH |
dummy
variable, 1 if village had primary school (1-6 grades) |
1997 |
- |
|
JUNSCH |
dummy
variable, 1 if village had junior school (7 and 8 grades |
1997 |
- |
|
ENSET |
dummy
variable, 1 if village resides in an enset growing area |
2004 |
- |
|
CHAT |
dummy variable, 1 if village resides in a chat growing area |
2004 |
- |
|
COFFEE |
dummy
variable, 1 if village resides in a coffee growing area |
2004 |
+ |
|
Regional dummies |
|
|
|
|
REG1 (base
category) |
whether
village resides in the |
2004 |
-/+ |
|
REG3 |
whether
village resides in the |
2004 |
-/+ |
|
REG4 |
whether
village resides in the |
2004 |
-/+ |
|
REGSN |
whether
village resides in the Southern Nations, Nationalities and |
2004 |
-/+ |
As noted
earlier, it has been anticipated that household and parental factors play a key
role in determining child schooling progress. Education of parents influences
child education through a variety of pathways. Educated parents may have more
information about advantages of educating their child and thus provide better
schooling environment at home such as helping children with their homework.
Secondly, educated parents may be more capable to deal with disequilibria when
shock exists to the family with out dislocating children out of school.
Thirdly, educated parents may have higher permanent income or wage, better
health and thus better education to their children. Fourthly, and related to
one or more of the above mentioned factors, educated parents are more
productive and hence need minimal or no child labor. In fact, several empirical
studies (e.g. DeGraff and Bilsborrow, 2003; Grira, 2004; Lire, 2005; Gitter and
Barham, 2007) concur with these arguments and find a positive and statistically
significant effect on child schooling of parental education. As noted by
Kurosaki et al. (2006), this effect
is consistent with the wealth effect hypothesis (educated parents are richer
than uneducated parents) and the preference effects hypothesis (educated
parents value education more than uneducated parents). As such, this study
hypothesizes for rural
The literature
on the effect of poverty on child schooling and/or labor provides different
arguments and mixed findings. On one hand, according to the “Luxury Axiom” of
Basu and Van (1998), child labor is expected to decline as parents’ income
raises. Along this notion,
Consistent with
these diverse findings, this study incorporates several explanatory variables
related to household poverty and wealth. We use household expenditure, measured
by an adult equivalent unit, as a proxy for household poverty status. Since
this variable may be potentially endogenous, we used its lagged value in 1997.
Our hypothesis is that child schooling progression is positively related with
household expenditure. To capture wealth effect, we included into our model two
variables, namely land and value of all consumer durables and farm equipment.
Specifically we anticipate that child schooling progression will be influenced
negatively by the size landholding and positively by the value of household
durable assets. Because of the lack of government land redistribution during
the last ten years on one hand and the absence of land markets in the country,
in this study we assume that household land ownership is more or less fixed and
it is less likely that land ownership causes problem of endogeneity with recent
child schooling behavior. Likewise, in using the Birr[5] value of consumer durables and farm equipment as
proxy for wealth we assume that child labor is not used as a source of finance
for the accumulation of household durable assets.
In addition, we
anticipate that parents’ access to credit and remittance have a positive effect
on child schooling progress. These variables could help relax a resource poor
farmer’s budget constraint and enable him to finance schooling expenses of his
children. A recent study from
Child
educational achievement is also influenced by school availability and village
characteristics. On this point, Lire (2005) finds evidence that a higher number
of schools in a community tends to improve school attendance and to reduce
child labor in
In the
literature, one also finds evidence that lack of insurance markets or its close
substitutes drives children out of school and work in the labor market (de
Janvry et al., 2006; Jacoby and
Skoufias, 1997). It is thus important to expect that children residing in
different villages face different risk of schooling delay, especially if
villages vary from one another in terms of cultivated crops, agro-ecology and farming
systems. Thus, we incorporated village level variables to account for village
level fixed effects on child educational progress in rural areas. Besides,
regional dummy variables are included to capture regional differences in labor
market availability, school supply and other factors.
6. Results and discussion
6.1 Descriptive results
This section describes important individual, household, and community level characteristics of children in our sample. The dependent variable, the educational gap[6], is the difference between the ideal number of grades/classes that has to be completed and the actual number of grades/classes completed by the child at that school-age. The higher the gap is the poorer the educational performance.
The descriptive results demonstrate that about 94% of the children experienced certain amount of grade delay in schooling. In our sample the education gap experienced by a child seems to vary with the age and sex of the child (see Table 2). In most of the cases girls are more likely to start schooling later and also be enrolled in lower grades than boys. The difference in gender gaps in primary schooling progress becomes statistically significant for 12- to 14-years old children.
Table 2. Age-Specific Education-Gap by Sex
|
Age |
Boys (N = 657) Mean Std. Dev |
Girls (N = 633) Mean Std. Dev |
Mean difference between boys’ and girls’ education gap |
||
|
7 |
0.83 |
0.38 |
0.88 |
0.33 |
0.05 |
|
8 |
1.66 |
0.61 |
1.61 |
0.66 |
0.05 |
|
9 |
2.31 |
0.97 |
2.27 |
0.99 |
0.05 |
|
10 |
2.84 |
1.16 |
3.0 |
1.19 |
0.15 |
|
11 |
3.54 |
1.48 |
3.14 |
1.64 |
0.41 |
|
12 |
3.74 |
1.86 |
4.16 |
1.8 |
0.42** |
|
13 |
4.48 |
1.99 |
4.94 |
2.03 |
0.46* |
|
14 |
4.61 |
2.27 |
5.39 |
2.36 |
0.78** |
** and * represent statistically significant means at 5% and 10% level, respectively.
On average,
children in our sample are 3 grades behind the desired school level appropriate
for their age. It is only 6% of the children who are enrolled at the
appropriate schooling level. For nearly 70% of the children the incidence of
education gap ranges from one to four grades (see Figure 2). Taken together,
the sample children completed only 2.5 grades. One
of the contributing factors to high incidence of child education gap or grade
delays is the low level of enrollment. Table 3 describes current enrollment
rate and grades completed according to age of children in the sample. The
result indicates children’s primary enrollment rate stands at 53%, which is
less than the national net enrollment rate of 57% for the same age group in
2003/04 (MOE, 2005). In fact, the problem is more severe for certain age
cohorts than others. For instance the lowest current enrollment rates are
observed for children aged 7 (26%) and 8 (34%) year olds suggesting that late
school entry is a serious problem in rural
Figure 2: Kernel Density of Number
of Grades lagged among Primary School-Age Rural Children, 2004

|
Table3:
Current enrollment and grades attained by primary school-age rural children, 2004 |
||||
|
Age
in Years |
Number
of Counts |
Count
Currently enrolled |
Enrollment
Rate by Age |
Average
grade currently completed |
|
177 |
40 |
0.23 |
0.28 |
|
|
8 |
178 |
57 |
0.32 |
0.63 |
|
9 |
||||