Determinants of Child Schooling Progress in Rural Ethiopia

 

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 Ethiopia, many children continue to remain behind normal schooling progress. Current national figures indicate that nearly 45% of the children who enroll in grade one drop out school before completing grade five. The purpose of this paper is, therefore, to examine the main micro-level determinants of schooling progress of primary school-age (7-14 years old) children using data from rural Ethiopia. Using demand side and supply side factors, estimation results of the Poisson regression provide various explanations for this delay in schooling. The major demand side factors determining schooling progress include poverty, parental education, land and non-land asset ownership, village fixed effects and a child’s demographic characteristics. On the supply side, differences in availability of primary and junior schools in the village significantly explain variation in children’s primary education achievement. The analysis also shows that the importance of these factors vary between boys and girls. The paper concludes by highlighting some policy interventions required to raise child schooling progress as well as close the gender gap in primary education in rural Ethiopia. 

 

JEL Classification: D13; I21; R21.

 

Keywords: child schooling progress; Poisson regression; Ethiopia.

 

 

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 Jomtien, Thailand in 1990, issued a declaration of “education for all” and recalled that access to education is a fundamental human right. In 2000, in Now York, the UN set down Millennium Development Goals (MDGs) which not only reiterated Universal Primary Education (UPE) as one primary goal but also re-enforced that there should be gender equality in access to primary education in all countries. In this respect, the submit calls for countries to plan and implement appropriate policies and strategies to ensure UPE for all children by 2015. Achieving the goal of UPE by 2015 requires not only children are in school but also complete primary education. Furthermore, the MDGs require development agencies and developed countries to re-affirm their commitment to provide financial and technical assistance to poor countries to implement these plans.

 

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 Honduras (Gitter and Barham, 2007), Peru (Pal, 2004; Patrinos and Psacharapoulos, 1997) and Mozambique (Handa and Simler, 2005). In analyzing cumulative education performance, these studies apply a composite performance index by combining information on official school entry age and a child’s current age and his/her actual grade completed.

 

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 Oxford Center for African Economies. 

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 Ethiopia, as in many other developing countries, education has received an increased government attention. Adopted in 1994, the current education and training policy of the Ethiopian government stresses boosting coverage and ensuring equitable access to education for all. In transferring these policy objectives into action, the government has formulated and adopted a twenty year education sector development program in 1997, with a rolling period of five years. It is also interesting to note that the education sector currently receives the largest share of public spending on pro-poor sectors[1] in the country.  For instance, between 2001/02 and 2004/05, the sector received about 18% of the government’ total expenditure on pro-poor sectors. As a result of the new education policy environment and increased public budget allocation, school enrollments have improved significantly over the last decade. For instance, as shown in Figure 1, between 1998/99 and 2004/05, primary school[2] gross enrollment rate has increased from 56% to 88% for boys and from 35% to 72% for girls (MOE, 2005). These figures indicate that slowly, but incrementally, the gender gap in children’s primary school participation in Ethiopia has narrowed down.

 

 

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 Ethiopia encounters high rates of dropout and of grade failures. For instance, according to the official data sources (MOE, 2005), nearly one among four grade-one children drops out of school and about 3% of them repeat grade-one. Moreover, primary education in Ethiopia has low rates of completion with around 43% and 66% of children quitting school before completing, respectively, the lower primary education (grade 5) and upper primary education (grade 8), in 2004/05. The MOE figures further reveal that whereas dropout rates are higher for boys, girls repeat grade more often than boys.

 

As noted by Bennell (2002) for many other Sub-Saharan countries, the high gross enrollment figures in Ethiopia mask the fact that nearly half of children do not complete the full primary education. Moreover, as noted by Bedi et al. (2004), an increase in gross enrollment rate could be due to a rise in the number of children repeating grades. In fact, the critical educational problem for many countries around the world is not the availability of school facilities but children dropping out or not attending available schools (World Bank, 2004).

 

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), Ghana (Ray, 2003), and Honduras (Bedi and Marshall, 2002), and the Philippines (Tan et al., 1997), to cite but a few examples. The main factor for this effect is that as children grow older they are more likely to participate in the labor market or on farm activities or in the domestic work. On the other hand, failure to complete grades at a proper pace results in two types of costs. In the first place, like delays in schooling, it causes delays in post-school returns. Second, it increases both private costs for parents and internal inefficiency of primary education for the government (Colclough and Al-Samarrai, 2000). Others (e.g. Bedi and Marshall, 2002) also note that low school progression has a negative influence on final educational achievement of the child. As noted by Binder and Scrogin (1999), poor education performance such as grade failures would induce children to reduce their academic effort and increase work effort.

 

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 Ethiopia, the main objective of this paper is to estimate the principal determinants of desired[3] schooling progress of children in rural Ethiopia. Unlike enrollment rate, which is a flow measure, grade-for-age score measures a child’s stock of human capital accumulation at a given age. As discussed later, apart from enrollment this score shows if a child has encountered problems such as late entry, failed grades or dropped out of school in the past. Stated in other words, the grade-to-age score shows whether a child has kept pace with grades expected to his or her age. In view of these features, an econometric analysis of its main determinants can generate more information for policy makers and school administrators. As mentioned previously, this is what this paper intends to address by using a rich dataset from Ethiopian rural children.

 

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 Africa, Asia, and Latin America. A common thread running through these studies is that child schooling experience in rural areas is related negatively with household poverty, and child age. Regarding gender effect, most studies just mentioned above find that girls are more likely to get less schooling than boys and that parental education has a positive and significant influence on enrollment and level of educational attainment.

 

Using a panel data from Tanzania, Burke and Beegle (2004), show that child school attendance is determined by a host of factors including household, child, and community characteristics. But they also noted that there are important gender differences in the factors influencing child schooling attendance and participation. In their analysis of the determinants of primary enrollment in Kenya, Bedi et al. (2004) have shown the key role played by child age, parental education, household wealth and school inputs on   parents’ decision to enroll their children.

 

In a recent study in Ethiopia, Assefa (2002) provides evidence that while child labor is a common phenomenon in rural Ethiopia, many children are able to combine schooling with work, particularly in the agricultural sector. Similar evidence is obtained by Cockburn and Dostie (2007) who finds that child time allocation decision among schooling, and work in rural Ethiopia is strongly determined by a combination of household income and wealth, family composition and asset ownership. In both studies, extent of child time allocation for these activities has not been explored since they have adopted a categorical dependent variable. Furthermore, these authors focused their attention on current status of child schooling and as such did not analyze schooling progression.

 

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 Ethiopia, primary education is free and parents are not obliged to pay fees. However, they face various other costs of sending their children to school. These costs include direct outlays for school uniforms, transport, books and school supplies (pen, pencil, and notebooks). Again, in Ethiopia, children participate in different activities on-or off-farm and domestic chores. This implies that children’s time spent in schooling has an opportunity cost since it involves forgoing children’s contributions to household production and to the labor market. Opportunity costs of schooling may vary from one child to the next depending on the type of activity performed and labor productivity in alternative activities (Song et al., 2006). To capture this effect it is essential to use child labor wage in the estimation. However, data on this variable is not available. One means of addressing this limitation is to incorporate variables  such as a child’s own demographic characteristics (i.e. age, sex) and location and community characteristics into the empirical model as these variables could determine the child’s opportunity cost of schooling (Song et al., 2006; Bedi and Marshal, 2002).

 

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, Addis Ababa University in collaboration with the Center for the Study of African Economics of Oxford University. The survey has been conducted on rural households for six rounds between 1994 and 2004, i.e., 1994a, 1994b, 1995, 1997, 1999/2000, and 2004, in fifteen villages in Amhara, Oromia, Tigray and Southern Nations Nationalities and Peoples Regions.  

 

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 Ethiopia’s policy, a primary school-age child in grade 8 in 2004 is expected to have started his/her primary schooling in grade 1 in 1997. Our empirical analysis for this paper was based on sample of 1290 primary school-age rural children living in 622 households.

 

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 Ethiopia. Hence, our unit of analysis is a primary school-age child, even though the data used in the analysis were as reported by the child’s household head.

 

The dependent variable, which we want to explain in this paper is education gap, , experienced by primary school-age rural children in Ethiopia. An increase in value of  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 Ethiopia. Our hypotheses on the variables have been guided by economic theory, previous empirical studies and field context. As mentioned previously, the explanatory variables are composed of child, household and community characteristics.

 

In agrarian societies, such as Ethiopia, children are important contributors to family income especially in rural areas where agriculture employs most of the child labor force in the country. Moreover, in the Ethiopian culture, domestic chores are usually performed by women and children. This means that child schooling entails some positive opportunity cost for parents and this costs may vary depending on the age and sex of the child. A study by Patrinos and Psacharopoulos (1997) for Peru indicates that a child’s age has a positive and significant effect on his/her schooling progression. A recent case study from Nepal, Peru and Zimbabwe (Lire, 2005) also confirms that child schooling is negatively associated with a child’s age. The main mechanism underlying this effect is that as a child gets older, it is more likely that he/she is sent to work than school. In a similar vein, child age is expected to increase child schooling delay in the present study. Consistent with previous studies (e.g. Patrinos and Psacharopoulos, 1997; Grira, 2004) in this study boys are expected to have more schooling progress than girls.  

 

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 Nepal, Peru, and Zimbabwe, Lire (2005) also finds that the probability of child schooling increases with the number of young children. The second argument on the effect of number of children on schooling is based on “specialization” in the family. According to this argument, parents put some children to work, others to education as the number of children increases in the family. Again, this proposition is supported by empirical evidence from Botswana (Chernichovsky, 1985 cited in Patrinos and Psacharopoulos, 1997). In order to test these competing hypotheses in the present study, two variables, namely, number of young boys and number of young girls in the household, are incorporated into the model, but with no a priori signs.

 


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 Tigray Regional State, 1 if yes

2004

-/+

   REG3

whether village resides in the Amhara Regional State, 1 if yes

2004

-/+

   REG4

whether village resides in the Oromia Regional State, 1 if yes

2004

-/+

   REGSN

whether village resides in the Southern Nations, Nationalities and Peoples Regional State, 1 if yes

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 Ethiopia a similar impact on child schooling of parental education using two proxy variables, namely education of the household head and his/her spouse.

 

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, Edmonds (2005) for Vietnam reports household expenditure has negative and significant effect on the incidence of child labor. On the other hand, according to the “wealth paradox”, parents with productive assets to work with are more likely to send their children to work than school. However, this effect again depends on the type and size of assets owned by parents. Thus, it is important to use different variables measuring wealth in empirical studies such as ours. For instance, using survey data from Ghana and Pakistan, Bhalotra and Heady (2003) find the incidence of child labor is higher among land-rich parents, whereas  Cockburn and Dostie (2007) and Assefa (2002), both using data from rural Ethiopia, report that child schooling enrollment is influenced negatively by the size of landholding, and positively by other assets such as farm equipment. In fact, the effect of land holding on schooling or child labor depends on availability of competitive markets for land and labor. If labor markets are available and a farmer can use his land as collateral to borrow money from bank to hire in labor, then large holdings would not exert a negative effect on child schooling (Bhalotra and Heady, 2000). However, in Ethiopia, land belongs to the state and farmers cannot use land as collateral. Moreover, labor markets are imperfect and farmers cannot hire in labor as they wish. One way to reduce the impact of imperfect labor market is to sell out some of the land they have. However, this option is unlikely since they do not have the right to sell land. Therefore, farmers have the incentive to employ their own family labor including school-age children for farm activities.

 

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 Honduras (Gitter and Barham, 2007) indicates a positive and significant association between child schooling progress and household access to credit. Likewise, Beegle et al. (2006) show that access to credit has a negative and significant effect to reduce child labor in Tanzania.  Regarding remittances, Edwards and Ureta (2003) indicate that children of households who received remittances show significantly lower hazards of leaving school at all grade level in El Salvador.

 

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 Nepal. Gitter and Barham (2007) have also reported a negative and significant effect on child educational attainment of travel time to nearest school in rural Honduras. In this regard, we incorporate dummy variables for whether primary and junior schools are available in a child’s village and hypothesize that these variables will have a positive influence on a child’s educational attainment. A main econometric concern in using the school supply variables here is that they are likely to become endogenous with child schooling. In other words, if the placement of schools in the villages is determined by the presence of excess delayed enrollment, then school supply becomes endogenous with the dependent variable. To avoid this problem, we used lagged values of the school supply variables.  

 

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 Ethiopia.

 

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

7

177

40

0.23

0.28

8

178

57

0.32

0.63

9