Children’s Own Time Use and its Effect on Skill Formation

Using time use data from a longitudinal survey (covering Ethiopia, India, and Vietnam), the present study examines how the amount of time children spend on different activities impacts their acquisition of cognitive and noncognitive skills. Modelling the skill formation production function of children and extending the set of inputs to include the child’s own time inputs, the study finds that child involvement in work activities (paid or nonpaid) are associated with a reduction in both cognitive and noncognitive achievements. The results imply an indirect adverse effect of child work on skill development through the reduction of hours of study.