Child labourers play an integral role in households' income diversification process by contributing to farm and non-farm incomes but policies, including that of ILO, have focused largely on eliminating child labour from the agricultural sector through education. This study sought to ascertain the relative contribution of child labourers to farm and non-farm incomes using the GLSS6 data and employed a SUR estimation that simulated, empirically, with the child's number of hours spent in school. Findings confirmed the trade-off between school hours and household farm and non-farm incomes but simulating and deriving the net effect after including child education revealed that as child labourers spend an extra hour in school, every Gh1.00 contributed to farm income is accompanied by a Gh2.12 contribution towards non-farm income. By implication, child education policy can remove child labourers from the farm but may likely result in a paradoxical effect of pushing these children into non-farm activities as they engage in them after school and during weekends. We suggest that government provides adequate remuneration for workers and lobby/bargain for comprehensive prices for agricultural products (internationally) so that households do not use children as instruments to diversify their income portfolios, since child labour acts as a push factor."> Child labourers play an integral role in households' income diversification process by contributing to farm and non-farm incomes but policies, including that of ILO, have focused largely on eliminating child labour from the agricultural sector through education. This study sought to ascertain the relative contribution of child labourers to farm and non-farm incomes using the GLSS6 data and employed a SUR estimation that simulated, empirically, with the child's number of hours spent in school. Findings confirmed the trade-off between school hours and household farm and non-farm incomes but simulating and deriving the net effect after including child education revealed that as child labourers spend an extra hour in school, every Gh1.00 contributed to farm income is accompanied by a Gh2.12 contribution towards non-farm income. By implication, child education policy can remove child labourers from the farm but may likely result in a paradoxical effect of pushing these children into non-farm activities as they engage in them after school and during weekends. We suggest that government provides adequate remuneration for workers and lobby/bargain for comprehensive prices for agricultural products (internationally) so that households do not use children as instruments to diversify their income portfolios, since child labour acts as a push factor."> Child labourers play an integral role in households' income diversification process by contributing to farm and non-farm incomes but policies, including">
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Relative Contribution of Child Labour to Household Farm and Non-Farm Income in Ghana: Simulation with Child's Education

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  • Isaac Koomson
  • Simplice A. Asongu
Abstract
type="main" xml:lang="en"> Child labourers play an integral role in households' income diversification process by contributing to farm and non-farm incomes but policies, including that of ILO, have focused largely on eliminating child labour from the agricultural sector through education. This study sought to ascertain the relative contribution of child labourers to farm and non-farm incomes using the GLSS6 data and employed a SUR estimation that simulated, empirically, with the child's number of hours spent in school. Findings confirmed the trade-off between school hours and household farm and non-farm incomes but simulating and deriving the net effect after including child education revealed that as child labourers spend an extra hour in school, every Gh1.00 contributed to farm income is accompanied by a Gh2.12 contribution towards non-farm income. By implication, child education policy can remove child labourers from the farm but may likely result in a paradoxical effect of pushing these children into non-farm activities as they engage in them after school and during weekends. We suggest that government provides adequate remuneration for workers and lobby/bargain for comprehensive prices for agricultural products (internationally) so that households do not use children as instruments to diversify their income portfolios, since child labour acts as a push factor.

Suggested Citation

  • Isaac Koomson & Simplice A. Asongu, 2016. "Relative Contribution of Child Labour to Household Farm and Non-Farm Income in Ghana: Simulation with Child's Education," African Development Review, African Development Bank, vol. 28(1), pages 104-115, March.
    • Handle: RePEc:bla:afrdev:v:28:y:2016:i:1:p:104-115
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    1. Nadeem Ilahi & Peter F. Orazem & Guilherme Sedlacek, 2009. "How Does Working as a Child Affect Wages, Income, and Poverty as an Adult?," Palgrave Macmillan Books, in: Peter F. Orazem & Guilherme Sedlacek & Zafiris Tzannatos (ed.), Child Labor and Education in Latin America, chapter 5, pages 87-101, Palgrave Macmillan.
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    8. Abdulai, Awudu & CroleRees, Anna, 2001. "Determinants of income diversification amongst rural households in Southern Mali," Food Policy, Elsevier, vol. 26(4), pages 437-452, August.
    9. C. Simon Fan, 2011. "The Luxury Axiom, The Wealth Paradox, And Child Labor," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(3), pages 25-45, September.
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    2. Asongu, Simplice A., 2017. "Assessing marginal, threshold, and net effects of financial globalisation on financial development in Africa," Journal of Multinational Financial Management, Elsevier, vol. 40(C), pages 103-114.
    3. Simplice Asongu & Lieven De Moor, 2015. "Financial globalisation and financial development in Africa: assessing marginal, threshold and net effects," Working Papers of the African Governance and Development Institute. 15/040, African Governance and Development Institute..
    4. God'stime Osekhebhen Eigbiremolen, 2017. "Determinants of Learning among Primary School Children in Ethiopia: Analysis of Round 2 and 3 of Young Lives Data," African Development Review, African Development Bank, vol. 29(2), pages 237-248, June.
    5. Jeff Luckstead & Francis Tsiboe & Lawton L Nalley, 2019. "Estimating the economic incentives necessary for eliminating child labor in Ghanaian cocoa production," PLOS ONE, Public Library of Science, vol. 14(6), pages 1-22, June.
    6. Raymond Boadi Frempong & David Stadelmann, 2019. "The Effect of Food Price Changes on Child Labour: Evidence from Uganda," Journal of Development Studies, Taylor & Francis Journals, vol. 55(7), pages 1492-1507, July.
    7. Valérie Bérenger & Audrey Verdier†Chouchane, 2016. "Child Labour and Schooling in South Sudan and Sudan: Is There a Gender Preference?," African Development Review, African Development Bank, vol. 28(S2), pages 177-190, October.
    8. Raymond Boadi Frempong & David Stadelmann, 2021. "Risk preference and child labor: Econometric evidence," Review of Development Economics, Wiley Blackwell, vol. 25(2), pages 878-894, May.
    9. Isaac Koomson & Simplice A. Asongu & Alex O. Acheampong, 2023. "Financial inclusion and food insecurity: Examining linkages and potential pathways," Journal of Consumer Affairs, Wiley Blackwell, vol. 57(1), pages 418-444, January.
    10. Uchenna R. Efobi & Ibukun Beecroft & Scholastica N. Atata, 2019. "Female Access and Rights to Land, and Rural Non‐farm Entrepreneurship in Four African Countries," African Development Review, African Development Bank, vol. 31(2), pages 179-189, June.
    11. Polyxeni Kechagia & Theodore Metaxas, 2023. "Capital Inflows and Working Children in Developing Countries: An Empirical Approach," Sustainability, MDPI, vol. 15(7), pages 1-18, April.

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    More about this item

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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