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

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  • P. Deb
  • F. Rosati

Abstract

We develop a random effects multinomial logit model to distinguish between unobserved and observed household characteristics as determinants of child labor and school attendance. Using a semi-parametric approach, the random effect is drawn from a discrete distribution of latent classes of households. The results show that household-level unobserved heterogeneity is substantial. Household-level unobserved heterogeneity swamps observed income and wealth heterogeneity. Households that belong to the class with a high latent propensity to send their children to work are not influenced by marginal changes in the explanatory variables. Households most sensitive to changes in explanatory variables are those with a high propensity to have their children neither in school nor working. Policy interventions and changes in external conditions are likely to produce large changes in the behavior of this group of families.

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Bibliographic Info

Paper provided by Understanding Children's Work (UCW Programme) in its series UCW Working Paper with number 9.

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Date of creation: Dec 2002
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Handle: RePEc:ucw:worpap:9

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  1. Kim, Byung-Do & Blattberg, Robert C & Rossi, Peter E, 1995. "Modeling the Distribution of Price Sensitivity and Implications for Optimal Retail Pricing," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(3), pages 291-303, July.
  2. FurioCamillo Rosati & Zafiris Tzannatos, 2006. "Child Labour In Vietnam," Pacific Economic Review, Wiley Blackwell, vol. 11(1), pages 1-31, 02.
  3. Ranjan, P., 1999. ""Credit Constraints and the Phenomenon of Child Labor"," Papers 98-99-12, California Irvine - School of Social Sciences.
  4. Jensen, P. & Nielsen, H.S., 1996. "Child Labour or School Attendance? Evidence from Zambia," Papers 96-14, Centre for Labour Market and Social Research, Danmark-.
  5. James J. Heckman, 2001. "Micro Data, Heterogeneity, and the Evaluation of Public Policy: Nobel Lecture," Journal of Political Economy, University of Chicago Press, vol. 109(4), pages 673-748, August.
  6. Ray, R., 1998. "Analysis of Child Labour in Peru and Pakistan: a Comparative Study," Papers 1998-05, Tasmania - Department of Economics.
  7. 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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  9. Lee, Lung-fei, 2000. "A numerically stable quadrature procedure for the one-factor random-component discrete choice model," Journal of Econometrics, Elsevier, vol. 95(1), pages 117-129, March.
  10. Ravallion, Martin & Wodon, Quentin, 1999. "Does child labor displace schooling? - evidence on behavioral responses to an enrollment subsidy," Policy Research Working Paper Series 2116, The World Bank.
  11. Browning, Martin & Francois Bourguignon & Pierre-Andre Chiappori & Valerie Lechene, 1994. "Income and Outcomes: A Structural Model of Intrahousehold Allocation," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1067-96, December.
  12. Keane, Michael, 1993. "Simulation estimation for panel data models with limited dependent variables," MPRA Paper 53029, University Library of Munich, Germany.
  13. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
  14. Deb, Partha & Trivedi, Pravin K., 2002. "The structure of demand for health care: latent class versus two-part models," Journal of Health Economics, Elsevier, vol. 21(4), pages 601-625, July.
  15. Pudney, Stephen & Galassi, Francesco L & Mealli, Fabrizia, 1998. "An Econometric Model of Farm Tenures in Fifteenth-Century Florence," Economica, London School of Economics and Political Science, vol. 65(260), pages 535-56, November.
  16. Sin, Chor-Yiu & White, Halbert, 1996. "Information criteria for selecting possibly misspecified parametric models," Journal of Econometrics, Elsevier, vol. 71(1-2), pages 207-225.
  17. Butler, J S & Moffitt, Robert, 1982. "A Computationally Efficient Quadrature Procedure for the One-Factor Multinomial Probit Model," Econometrica, Econometric Society, vol. 50(3), pages 761-64, May.
  18. Basu, Kaushik, 1998. "Child labor : cause, consequence, and cure, with remarks on International Labor Standards," Policy Research Working Paper Series 2027, The World Bank.
  19. 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.
  20. 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.
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Citations

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Cited by:
  1. Mukherjee, Dipa, 2010. "Child workers in India: an overview of macro dimensions," MPRA Paper 35049, University Library of Munich, Germany, revised 2011.
  2. VERHEYDEN Bertrand & FAYE Ousmane, 2011. "Fertility and Child Occupation: Theory and Evidence from Senegal," CEPS/INSTEAD Working Paper Series 2011-59, CEPS/INSTEAD.
  3. 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.
  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. Baland, Jean-Marie & Duprez, Cédric, 2007. "Are Fair Trade Labels Effective Against Child Labour?," CEPR Discussion Papers 6259, C.E.P.R. Discussion Papers.
  6. Leonardo Becchetti & Stefano Castriota & Melania Michetti, 2013. "The effect of fair trade affiliation on child schooling: evidence from a sample of Chilean honey producers," Applied Economics, Taylor & Francis Journals, vol. 45(25), pages 3552-3563, September.
  7. Jellal, Mohamed & Tarbalouti, Essaid, 2012. "Institutions éducation et travail des enfants
    [Institutions education and child labor]
    ," MPRA Paper 39384, University Library of Munich, Germany.
  8. 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.
  9. 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.
  10. 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.
  11. 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.
  12. 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.
  13. 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.
  14. Kulsoom, Rafia, 2007. "Child Labor at District Level: A Case Study of Rawalpindi," MPRA Paper 17224, University Library of Munich, Germany.
  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. Eric V. Edmonds, 2003. "Does Child Labor Decline with Improving Economic Status?," NBER Working Papers 10134, National Bureau of Economic Research, Inc.

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