Abstract
Evidence on the extent of low enrolment and late entry for a sample of rural households in Ethiopia is provided, and two potential sources of education externality benefits for school-age children, parental and neighbourhood education, are examined. The education of parents, most significantly mothers, is found to contribute to children's schooling, as does the education of neighbourhood women. The mechanisms by which such externalities may operate are considered by examining the effects of cognitive and non-cognitive outputs of schooling upon current school enrolment of children. Findings illustrate both the importance of girls' schooling and some challenges for education policy.
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