Abstract
This study shows how persistent agricultural shocks in Ethiopia affect education, health and labor outcomes through a time-use study of young people aged 5-22. 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. Agricultural shocks significantly reduce schooling participation and time spent in schooling, deteriorate health, and increase both labor force participation and labor 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 labor during shocks, but their intensity of child labor is significantly lower compared to poorer households.
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