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Does Child Labor Decline with Improving Economic Status?

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Eric V. Edmonds

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Abstract

From 1993 to 1997, GDP per capita in Vietnam grew by between 6 and 7 percent annually. Child labor declined by 28 percent over this period. Using a simple, nonparametric decomposition, I investigate the relationship between improvements in per capita expenditure and child labor with a panel dataset of Vietnamese households that spans this episode of growth. I find that improvements in per capita expenditure can explain 80 percent of the decline in child labor that occurs in households whose expenditures improve enough to move out of poverty. This finding suggests a previously undocumented role for economic growth in the amelioration of child labor.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10134.

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Date of creation: Dec 2003
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Handle: RePEc:nbr:nberwo:10134

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Find related papers by JEL classification:
J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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  1. Eric Edmonds & Nina Pavcnik, 2004. "International Trade and Child Labor: Cross-Country Evidence," NBER Working Papers 10317, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Martin Valdivia & Dean Karlan, 2006. "Teaching Entrepreneurship: Impact of Business Training on Microfinance Clients and Institutions," Working Papers 941, Economic Growth Center, Yale University. [Downloadable!]
    Other versions:
  3. Diana Kruger & Rodrigo R. Soares & Matias Berthelon, 2007. "Household Choices of Child Labor and Schooling: A Simple Model with Application to Brazil," IZA Discussion Papers 2776, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Harald Grossmann & Jochen Michaelis, 2004. "Trade Sanctions and the Incidence of Child Labour," Discussion Papers in Economics 54/04, University of Kassel, Institute of Economics. [Downloadable!]
    Other versions:
  5. Michael A. Clemens, 2004. "The Long Walk to School: International education goals in historical perspective," Development and Comp Systems 0403007, EconWPA. [Downloadable!]
    Other versions:
  6. Jones, Nicola & Nguyen, Ngoc Anh & Nguyen, Thu Hang, 2007. "Trade liberalisation and intra-household poverty in Vietnam: a q2 social impact analysis," MPRA Paper 4206, University Library of Munich, Germany. [Downloadable!]
  7. Sylvain E. Dessy & Flaubert Mbiekop & Stéphane Pallage, 2005. "The Economics of Child Trafficking (Part II)," Cahiers de recherche 0509, CIRPEE. [Downloadable!]
  8. M. Manacorda & F. C. Rosati, 2007. "Local labor demand and child labor," UCW Working Paper 34, Understanding Children's Work (UCW Project). [Downloadable!]
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