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Determinants of Child Labor and School Attendance: The Role of Household Unobservables

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Abstract

We develop a semi-parametric latent class random effects multinomial logit model to distinguish between observed and unobserved household characteristics as determinants of child labor, school attendance and idleness. We find that much of the substitution between activities as a response to changes in covariates is between attending school and being idle, with work being rather resistant. Unobserved household heterogeneity is substantial and swamps observed income and wealth heterogeneity. A characterization of households into latent types reveals very different instrinsic propensities towards the three children's activities and that households with a high propensity to send their children to school are poorer and have less educated parents compared to households in the other classes.

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Bibliographic Info

Paper provided by Hunter College Department of Economics in its series Economics Working Paper Archive at Hunter College with number 02/9.

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Length: 33 pages
Date of creation: 2002
Date of revision:
Handle: RePEc:htr:hcecon:02/9

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  1. Peter Jensen & Helena Skyt Nielsen, 1997. "Child labour or school attendance? Evidence from Zambia," Journal of Population Economics, Springer, vol. 10(4), pages 407-424.
  2. Behrman, Jere R., 1993. "Intrahousehold distribution and the family," Handbook of Population and Family Economics, in: M. R. Rosenzweig & Stark, O. (ed.), Handbook of Population and Family Economics, edition 1, volume 1, chapter 4, pages 125-187 Elsevier.
  3. Ranjan, P., 1999. ""Credit Constraints and the Phenomenon of Child Labor"," Papers 98-99-12, California Irvine - School of Social Sciences.
  4. Kaushik Basu, 1999. "Child Labor: Cause, Consequence, and Cure, with Remarks on International Labor Standards," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1083-1119, September.
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  14. Jean-Marie Baland & James A. Robinson, 2000. "Is Child Labor Inefficient?," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 663-679, August.
  15. Jain, Dipak C & Vilcassim, Naufel J & Chintagunta, Pradeep K, 1994. "A Random-Coefficients Logit Brand-Choice Model Applied to Panel Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 12(3), pages 317-28, July.
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Cited by:
  1. Rubiana Chamarbagwala & Rusty Tchernis, 2006. "The Role of Social Norms in Child Labor and Schooling in India," Caepr Working Papers 2006-016, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington.
  2. Jellal, Mohamed & Tarbalouti, Essaid, 2012. "Institutions éducation et travail des enfants
    [Institutions education and child labor]
    ," MPRA Paper 39384, University Library of Munich, Germany.
  3. Shunsuke Sakamoto, 2006. "Parental Attitudes toward Children and Child Labor: Evidence from Rural India," Hi-Stat Discussion Paper Series d05-136, Institute of Economic Research, Hitotsubashi University.
  4. Sudipta Sarangi & Gautam Hararika, . "Household Access to Microcredit and Child Work in Rural Malawi," Departmental Working Papers 2007-09, Department of Economics, Louisiana State University.
  5. Veronica Amarante & Mery Ferrando & Andrea Vigorito, 2011. "School Attendance, Child Labor and Cash Transfers. An Impact Evaluation of PANES," Working Papers PIERI 2011-22, PEP-PIERI.
  6. Kulsoom, Rafia, 2007. "Child Labor at District Level: A Case Study of Rawalpindi," MPRA Paper 17224, University Library of Munich, Germany.
  7. Leonardo Becchetti & Stefano Castriota & Melania Michetti, 2012. "The Effect of Fair Trade Affiliation on Child Schooling: Evidence from a Sample of Chilean Honey Producers," Working Papers 2012.56, Fondazione Eni Enrico Mattei.
  8. Baland, Jean-Marie & Duprez, Cédric, 2007. "Are Fair Trade Labels Effective Against Child Labour?," CEPR Discussion Papers 6259, C.E.P.R. Discussion Papers.
  9. Eric V. Edmonds, 2003. "Does Child Labor Decline with Improving Economic Status?," NBER Working Papers 10134, National Bureau of Economic Research, Inc.
  10. Mukherjee, Dipa, 2010. "Child workers in India: an overview of macro dimensions," MPRA Paper 35049, University Library of Munich, Germany, revised 2011.
  11. Goto, Hideaki, 2011. "Social norms, inequality and child labor," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(6), pages 806-814.
  12. Jayanta Sarkar & Dipanwita Sarkar, 2012. "Why does child labour persist with declining poverty?," NCER Working Paper Series 84, National Centre for Econometric Research, revised 21 Nov 2012.
  13. VERHEYDEN Bertrand & FAYE Ousmane, 2011. "Fertility and Child Occupation: Theory and Evidence from Senegal," CEPS/INSTEAD Working Paper Series 2011-59, CEPS/INSTEAD.
  14. Baland, Jean-Marie & Duprez, Cédric, 2009. "Are labels effective against child labor?," Journal of Public Economics, Elsevier, vol. 93(11-12), pages 1125-1130, December.
  15. Papa Seck, 2005. "Do Parents Favor their Biological Offspring over Adopted Orphans? Theory and Evidence from Tanzania," Economics Working Paper Archive at Hunter College 409, Hunter College Department of Economics.
  16. Rubiana Chamarbagwala & Rusty Tchernis, 2010. "Exploring the spatial determinants of children’s activities: evidence from India," Empirical Economics, Springer, vol. 39(2), pages 593-617, October.

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