Hours by Type of Work and Schooling in Ethiopia: Nonparametric and Parametric Estimates

Evangelos M. Falaris

Abstract
I estimate regressions of the relationship between time devoted to alternative types of work activities and worker characteristics using data from Ethiopia. The regressions are useful in investigating how changes in individuals’ schooling are likely to affect their type of work activity which has implications for poverty reduction and their economic well-being. I estimate nonparametric regression as well Tobit models. The less restrictive nonparametric models are superior and reveal patterns in the relation of schooling and time devoted to three different work activities that are not apparent with Tobit models. The nonparametric and Tobit models result in significantly different predictions in the majority of the cases considered.

Keywords
hours by type of work, nonparametric regression, labor supply, Ethiopia