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Child Labor and Trade Liberalization in Indonesia

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  • Kis-Katos, Krisztina

    ()
    (University of Freiburg)

  • Sparrow, Robert

    ()
    (Australian National University)

Abstract

We examine the effects of trade liberalization on child work in Indonesia. Our estimation strategy identifies geographical differences in the effects of trade policy through district level exposure to reduction in import tariff barriers. We use a balanced panel of 261 districts, based on four rounds (1993 to 2002) of the Indonesian annual national household survey (Susenas), and relate workforce participation of children aged 10-15 to geographic variation in relative tariff exposure. Our main findings show that increased exposure to trade liberalization is associated with a decrease in child work among the 10 to 15 year olds. The effects of tariff reductions are strongest for children from low skill backgrounds and in rural areas. Favorable income effects for the poor, induced by trade liberalization, are likely to be the dominating effects underlying these results.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4376.

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Length: 52 pages
Date of creation: Aug 2009
Date of revision:
Publication status: published in: Journal of Human Resources, 2011, 46 (4), 722-749
Handle: RePEc:iza:izadps:dp4376

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Keywords: poverty; trade liberalization; child labor; Indonesia;

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References

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Citations

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Cited by:
  1. Kis-Katos, Krisztina & Sparrow, Robert, 2013. "Poverty, Labour Markets and Trade Liberalization in Indonesia," IZA Discussion Papers 7645, Institute for the Study of Labor (IZA).
  2. Elizabeth Jane Casabianca, 2012. "Distributional effects of preferential and multilateral trade liberalization: the case of Paraguay," FIW Working Paper series, FIW 083, FIW.
  3. Kis-Katos, Krisztina & Sparrow, Robert, 2009. "Child Labor and Trade Liberalization in Indonesia," IZA Discussion Papers 4376, Institute for the Study of Labor (IZA).
  4. Gaddis, Isis & Pieters, Janneke, 2012. "Trade Liberalization and Female Labor Force Participation: Evidence from Brazil," IZA Discussion Papers 6809, Institute for the Study of Labor (IZA).
  5. Grimm, Michael & Sparrow, Robert & Tasciotti, Luca, 2014. "Does Electrification Spur the Fertility Transition? Evidence from Indonesia," IZA Discussion Papers 8146, Institute for the Study of Labor (IZA).
  6. Bonfatti, Roberto & Ghatak, Maitreesh, 2013. "Trade and the allocation of talent with capital market imperfections," Journal of International Economics, Elsevier, Elsevier, vol. 89(1), pages 187-201.
  7. Anukriti, S & Kumler, Todd J., 2014. "Tariffs, Social Status, and Gender in India," IZA Discussion Papers 7969, Institute for the Study of Labor (IZA).
  8. Armand A Sim & Daniel Suryadarma & Asep Suryahadi, 2011. "The Consequences of Child Market Work on the Growth of Human Capital," Departmental Working Papers, The Australian National University, Arndt-Corden Department of Economics 2011-10, The Australian National University, Arndt-Corden Department of Economics.
  9. Sumarto, Sudarno & de Silva, Indunil, 2013. "Education Transfers, expenditures and child labour supply in Indonesia: An evaluationof impacts and flypaper effects," MPRA Paper 57132, University Library of Munich, Germany.

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