The Effects of Growth in the Agricultural and Service Sectors on Out-Of-School Children in the Lao PDR

Abstract

Lao PDR experienced a high rate of out of school children in the last decade, while its economy grew averaging 6.96% from 1989 until 2017. A high growth in certain economic sectors (e.g., agriculture or services) may inadvertently induce students to leave school to work directly, and also indirectly encourage them to leave school to replace adult labor in the household. The current research targets to examine the impact of the growth of the sectors on out-of-school children in primary and lower secondary education. The analysis uses household data from 2012 and employs a multinomial logit model. The results suggest that the growth in the agricultural and service sectors reduces the possibility of school-age children in school enrollment. Moreover, it increases the probability of never enrolled and school dropout.