Relative Contribution of Child Labour to Household Farm and Non-Farm Income in Ghana: Simulation with Child's Education

African Development Review, 28(1), pp. 104-115 (2016).

22 Pages Posted: 18 Sep 2015 Last revised: 5 Mar 2016

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Isaac Koomson

University of New England (Australia) - UNE Business School

Date Written: September 16, 2015

Abstract

Child labourers play an integral role in households’ income diversification process by contributing to farm and non-farm incomes but policies, including that of the 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 income using the GLSS6 data and employed a SUR estimation that simulated, empirically, with child’s education. Findings showed that as a child labourer spends more time in school, every Gh₵1.00 contributed to farm income is accompanied by a Gh₵2.12 contribution towards non-farm income. By implication, child education policy removes child labourers from the farm but are likely to have a paradoxical effect of pushing these children into non-farm activities as they engage in them after school and during weekends. The suggestion is that governments must provide adequate remuneration for workers and pay a good price for agricultural products so that households do not use children as instruments to diversity their income portfolios, since child labour acts as a push factor in the diversification process.

Keywords: Child labour, Farm income, Non-Farm income, Altruistic, Non-Altruistic

JEL Classification: I21, J21, J22, J23, Q12

Suggested Citation

Asongu, Simplice and Koomson, Isaac, Relative Contribution of Child Labour to Household Farm and Non-Farm Income in Ghana: Simulation with Child's Education (September 16, 2015). African Development Review, 28(1), pp. 104-115 (2016).. Available at SSRN: https://ssrn.com/abstract=2661457 or http://dx.doi.org/10.2139/ssrn.2661457

Simplice Asongu

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Isaac Koomson (Contact Author)

University of New England (Australia) - UNE Business School ( email )

Armidale, NSW 2351
Australia

HOME PAGE: http://https://www.une.edu.au/

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