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Persistent Agricultural Shocks and Child Poverty: Evidence from Ethiopia

Author

Listed:
  • Ashish K. Sedai
  • Lackson D. Mudenda
  • Ray Miller

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.

Suggested Citation

  • Ashish K. Sedai & Lackson D. Mudenda & Ray Miller, 2022. "Persistent Agricultural Shocks and Child Poverty: Evidence from Ethiopia," CAMA Working Papers 2022-66, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:camaaa:2022-66
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    File URL: https://cama.crawford.anu.edu.au/sites/default/files/publication/cama_crawford_anu_edu_au/2022-10/66_2022_sedai_mudenda_miller_0.pdf
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    More about this item

    Keywords

    Agriculture; Shocks; Labour; Education; Wealth; Time Use;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • I20 - Health, Education, and Welfare - - Education - - - General
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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