Participation in Off-Farm Employment, Risk Preferences, and Weather Variability: The Case of Ethiopia

This article assesses the relative importance of risk preferences and rainfall availability on households’ decision to engage in off-farm employment. Devoting time for off-farm activities, while it helps households earn additional incomes, involves a number of uncertainties. Unique panel data from Ethiopia which includes experimentally generated risk preference measures combined with longitudinal rainfall data is used in the analysis. An off farm participation decision and activity choice showed that both variability and reduced availability of rainfall as well as neutral risk preferences increase the likelihood of off-farm participation. From policy perspective, the results imply that expanding off farm opportunities could act as safety nets in the face of weather uncertainty. In addition, policy initiatives geared towards encouraging income diversification through off farm employment need to address underlying factor that condition risk bearing ability of households.Off-farm employment, labor supply, rainfall variability/reduced availability, risk preferences, GLLAMM, Ethiopia, Labor and Human Capital, Q13, D81, C35, C93,

Participation in Off-Farm Employment, Rainfall Patterns, and Rate of Time Preferences: The Case of Ethiopia

Devoting time to off-farm activities, while complementing agricultural incomes, may be constrained by labor availability and financial capacity. This paper assesses the importance of rainfall patterns, which condition the availability of agricultural labor, and financial constraints on off-farm employment decisions. Using panel data from Ethiopia, which include experimental rate-of-time preference measures, we found that these and rainfall are significant determinants off-farm employment. Rural development policies should take into account the financial capacity of households and the role of off-farm opportunities as safety nets in the face of weather uncertainty.off-farm employment, rainfall variability, reduced availability of water, rate-of time-preferences, multinomial logit, Ethiopia

Whoever has will be given more: child endowment and human capital investment

Using a unique longitudinal survey from Ethiopia, we investigate whether resource constrained\nparents reinforce or attenuate differences in early abilities between their children. We propose a simple model that allows for sibling interactions. To overcome the endogeneity associated with measures of endowment, we construct a measure of human capital at birth that is plausibly net of prenatal investment. We estimate a sibling fixed-effect model to account for bias due to unobserved family-specific heterogeneity. We find that parents reinforce educational inequality: inherently healthy children are more likely to attend preschool, be enrolled in elementary school, and have more expenses incurred towards their education. Health inputs are allocated in a compensatory manner.\

The Role of Early Intervention on Skill Formation

První kapitola je věnována zkoumání množství času, který děti stráví při různých aktivitách, a dopadu na utváření kognitivních a nekognitivních schopností. K danému účelu byla využita data z longitudinálního šetření, zahrnujícího Etiopii, Indii a Vietnam. Vytvořením modelu produkční funkce utváření schopností dětí, kde strávený čas při různých aktivitách představuje vstupní proměnnou, bylo zjištěno, že děti zapojené do pracovních činností (placené i neplacené) vykazují zhoršení kognitivních i nekognitivních schopností. Výsledky naznačují nepřímý vedlejší vliv dětské práce na rozvoj schopností v důsledku snížení počtu hodin věnovaných studiu. V druhé kapitole byl na základě longitudinálního šetření z Etiopie prozkoumán vliv omezených zdrojů rodičů na rozdíly mezi dětmi. Z důvodu možné endogenity spojené s měřením nadání je vytvořena míra lidského kapitálu při narození, která by měla být očištěna od vlivu prenatálních investic. Ve snaze snížit zkreslení odhadu v důsledku nepozorovaných specifických odlišností jednotlivých rodin byl využit fixed-effect model. Bylo zjištěno, že rodiče prohlubují nerovnost vzdělání, jelikož děti bez dědičných nemocí jsou častěji přijímány k předškolní docházce, zapsány k základnímu vzdělání a vykazují vyšší výdaje na vzdělání. V kontrastu s výdaji na vzdělaní jsou výdaje na...In the first chapter, I use time use data from a longitudinal survey (covering Ethiopia, India and Vietnam), to examine how the amount of time children spend on different activities impacts their acquisition of cognitive and noncognitive skills. Modeling the skill formation production function of children and extending the set of inputs to include the child's own time inputs, the study finds that child involvement in work activities (paid or nonpaid) are associated with a reduction in both cognitive and noncognitive achievements. The results imply an indirect adverse effect of child work on skill development through the reduction of hours of study. In the second chapter, using a unique longitudinal survey from Ethiopia, we investigate whether resource constrained parents reinforce or attenuate differences in early abilities between their children. To overcome the potential endogeneity associated with measures of endowment, we construct a measure of human capital at birth that is plausibly net of prenatal investment. Furthermore, we estimate a sibling fixed-effect model to reduce the bias due to unobserved family-specific heterogeneity. We find that parents reinforce educational inequality, as inherently healthy children are more likely to attend preschool, be enrolled in elementary school, and have...CERGEFakulta sociálních vědFaculty of Social Science

The Role of Early Intervention on Skill Formation

In the first chapter, I use time use data from a longitudinal survey (covering Ethiopia, India and Vietnam), to examine how the amount of time children spend on different activities impacts their acquisition of cognitive and noncognitive skills. Modeling the skill formation production function of children and extending the set of inputs to include the child's own time inputs, the study finds that child involvement in work activities (paid or nonpaid) are associated with a reduction in both cognitive and noncognitive achievements. The results imply an indirect adverse effect of child work on skill development through the reduction of hours of study. In the second chapter, using a unique longitudinal survey from Ethiopia, we investigate whether resource constrained parents reinforce or attenuate differences in early abilities between their children. To overcome the potential endogeneity associated with measures of endowment, we construct a measure of human capital at birth that is plausibly net of prenatal investment. Furthermore, we estimate a sibling fixed-effect model to reduce the bias due to unobserved family-specific heterogeneity. We find that parents reinforce educational inequality, as inherently healthy children are more likely to attend preschool, be enrolled in elementary school, and have..

Participation in Off-Farm Employment, Risk Preferences, and Weather Variability: The Case of Ethiopia

This article assesses the relative importance of risk preferences and rainfall availability on households’ decision to engage in off-farm employment. Devoting time for off-farm activities, while it helps households earn additional incomes, involves a number of uncertainties. Unique panel data from Ethiopia which includes experimentally generated risk preference measures combined with longitudinal rainfall data is used in the analysis. An off farm participation decision and activity choice showed that both variability and reduced availability of rainfall as well as neutral risk preferences increase the likelihood of off-farm participation. From policy perspective, the results imply that expanding off farm opportunities could act as safety nets in the face of weather uncertainty. In addition, policy initiatives geared towards encouraging income diversification through off farm employment need to address underlying factor that condition risk bearing ability of households