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African Study Monographs , Suppl. 29: 107-113, March 2005 107 INTERACTION OF FORMAL EDUCATION WITH THE HOUSE- HOLD ECONOMY IN RURAL ETHIOPIA: THE CASE OF THE WOYISSO-QANCAARA, EAST SHOWA ZONE OF OROMIA REGION Daniel Hailu Department of Sociology and Social Anthropology, Addis Ababa University ABSTRACT In recent years, there has been a dramatic rise in enthusiasm for formal educa- tion among the rural community of Woyisso-Qancaara. This means that formal education, as an institution that evolved in an alien culture, is coming into closer interaction with the social and economic realities of the inhabitants of Woyisso-Qancaara. Among the implications of this interaction is the ascription of a new status and role of a student on school-going chil- dren, which is disturbing the traditional household division of labor. It will be noted that by sending their children to schools, households are forced to incur the opportunity cost of for- going the immediate use of the labor of their children. The paper describes some mechanisms by which households cope with the resulting labor shortfall. Other than forgoing the labor of their children, parents also needed to invest part of their income on the schooling of their children. The opportunity cost of forgoing labor and the actual cost of supporting schooling combine with the decrease in the average income of households and the rise in population to weaken the economy of households in Woyisso-Qancaara. Key Words: Formal education; Woyisso-Qancaara; Labor; Opportunity cost; Household in- come/economy. INTRODUCTION Fagerline Lawrence (1983: 78) documented cases in which “the belief that more education leads to better jobs has been a principal motivating factor for young people to stay in school longer” and for pare