1. Presented by Ehouman Williams V AHOUAKAN ahouakanwilliams@yahoo.fr We are thankful to Prof. YAO YAO JOSEPH and Prof. M’BAYE DIENE PRIVATE REGIONAL RETURN TO EDUCATION, CHILD LABOR AND SCHOOLING IN CÔTE D’IVOIRE

2. PLAN OF THE PRESENTATION I. Context and Research question II. Objectives of the study III. Problems with the previous studies IV. Methods V. Data sources VI. Results

3. I. Context and Research question (Start) Child labor is a worldwide phenomenon. In Africa 21% (almost 59 millions) of children are concerned by this phenomenon (ILO, 2012) In Cote d’Ivoire its incidence is 71.4% (INS, 2014)

4. I. Context and Research question (Further) The percentage of children involved in economic activities increased by 2% over the period 2008 to 2013. And they worked in average for more than 35 hours a week (INS, 2008 ; INS, 2014) The proportion of girls involved in economic activities increased in a more greater manner over the same period: 5% of increase (INS, 2008 ; INS, 2014)

5. I. Context and Research question (Further) The level of wealth and welfare is more higher in urban areas than in rural areas in CI (DHS 2012) And although there is better access to schools in urban areas than in rural areas, the school dropout rate in CI has been more important in urban areas than in rural areas in 2012 (Primary: 51.6% against 48.4% and Secondary 68.7% against 31.3%), AGEPE (2012) These figures seems indicate a kind of disinterest of populations for education in Côte d’Ivoire

6. I. Context and Research question (Further) LABOR MARKET IN COTE D’IVOIRE INFORMAL SECTOR 89.4% of employments FORMAL SECTOR 8.8% of employments - The rate of unemployment is increasing with the level of grade - More than 85% among people who have not CEPE is employed - Only 30% among those who have a master get a suitable job -The average level of education is 4.20 years for the employed people and 7.38 for those in unemployment -Young in employment earn in average less than the old cohorts - Women earn 30393CFA in average per month while men earn 62988CFA in average

7. I. Context and Research question (End) All these facts seem indicate that low returns expected to education may be responsible of child labor and of low level of investments realised in schooling beyond the main causes usually raised in the literature (poverty, economic shocks, markets imperfections, etc.), Does the expected returns to education in Côte d’Ivoire contribute to explain households’s decisions to involve their children into economic activities or to send them at school?

8. II. Objectives of the study (1) To analyse whether the private returns expected to education in CI are likely to explain households’s decision to send their children at school (2) To assess whether the same variable is likely to explain their decision to early involve their children into economic activities

9. III. Problems with the previous studies Some studies have been already conducted on the same topic in developing countries (see for example Gormly and Swinnerton, 2004; Chamarbagwala, 2008) But the measure used of the return to education is not suitable. These studies are not able to disentangle the return to education from the total income

10. IV. Methods (Start) After some simplifications the FOC:

11. IV. Methods (End) A Mincer (1974) equation and the Lewbel (2012) approach to estimate the regional return to education that we used as a mesure of the expected return to education And a bivariate probit to examinate the effect of these regional returns to education on household’s decisions to make their children work and/or on send them at school

12. V. DATA (Start) The data used come from the ENV of 2008 and from the EEMCI of 2012. These 2 datasets have the same sampling base. They have been pooled as part of this study. Sample size: the ENV of 2008---17,512 children and the EEMCI of 2012--- 14,138 children

13. V. DATA (End) Dependant variables in the bivariate probit: - the status of work of the child (1 when he is involved into economic activities and 0 otherwise) - that of his schooling (1 when he goes to school and 0 otherwise) Key variable: private regional return expected to education Controls: age and sex of the child, the size of his household, age, sex and level of education of the head, the level of income of the HH, the place of residence, income per capita at the regional level, the number of adults without educ and those with edu in each region, indicatory variables (year and regional fix effects)

14. VI. Results (Start) A marginal improvement of the private regional return expected to education is associated with: An improvement of the probabilty that children who have a primary school level attend school A reduction of the probality that children belonging to the age group of 14-17 years be involved in economic activities A reduction of the probability that girls be involved in economic activities and an increase of their probability to attend school

15. VI. Results (End) This study allowed us to see that the private returns expected to education also contribute to explain the households decisions to involve their children into labor beyond the factors usually used to explain this phenomenon (HH poverty, economic shocks, etc) So, the policies (cash transfers for poor household, improvement of property right on land, better access to credit) which are usually used to cope with child labor and to favor schooling may be inefficient in Côte d’Ivoire They must be associate with policies that aim to improve the private returns to education such as a better transparency on the labor market, a revision of curricula in order to promote entrepreneurship and a reduction of discrimination against women on the labor market in CI

16. THANK YOU VERY MUCH FOR YOUR LISTENING

17. where Unlike traditional IV method, the identification of the parameters of the structural equation (1) are identified by the heteroscedascity between of Z and, ie Lewbel shows that if that conditions is satisfied, then as a good instrument for