The interrelationship between fosterage, schooling, and children’s labor force participation in Ghana ANASTASIA GAGE Tulane University, New Orleans, LA 70112, USA Abstract. This paper examines the interrelationship between fosterage, school atten- dance, and children’s employment in Ghana. Using the 1991/1992 Living Standards Survey data on children aged 7–17 years and a trivariate probit model, the paper demonstrates that ignoring the linkages between these outcomes leads to downward- biased estimates of the impact of fosterage on schooling and upward-biased estimates of the impact of fosterage on work. Gender and age are important considerations in family decisions regarding children’s activities. Joint decision-making is more common for girls aged 12–17 than for boys of a similar age. A significant negative correlation is also observed between the likelihood of employment and the likelihood of school attendance among adolescent girls. Keywords: Child labor, Education, Fosterage, Ghana Introduction This paper focuses on the interrelationship between fosterage, school- ing, and children’s labor force participation in Ghana. The central thesis is that a major adaptive strategy available to families is the allocation of children to the labor force or school and the fosterage of children in or out of the household. Children’s age and gender, along with household resources, shape the choices among these alternatives. The paper examines whether fosterage is endogenous to decisions per- taining to children’s schooling and labor force participation, and whe- ther the treatment of fosterage as simultaneously determined affects the estimated impact of fosterage on children’s schooling and labor force participation. It also explores gender and age differences in the extent to which fosterage, schooling, and children’s labor force partic- ipation are simultaneously determined. The final section discusses the determinants of schooling and labor force participation, focusing on the effects of family resources and their dilution. Socialization patterns and modes of domestic organization cannot be ignored in any analysis of children’s opportunities in the West African context. The delegation of aspects of the parental role Population Research and Policy Review (2005) 24: 431–466 Ó Springer 2005 DOI 10.1007/s11113-005-4290-z