Determinants of Child Labour and School Attendance: The Role of Household Unobservables
AbstractWe 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 InfoPaper provided by Understanding Children's Work (UCW Programme) in its series UCW Working Paper with number 9.
Date of creation: Dec 2002
Date of revision:
Other versions of this item:
- Partha Deb & Furio Rosati, 2002. "Determinants of Child Labor and School Attendance: The Role of Household Unobservables," Hunter College Department of Economics Working Papers 02/9, Hunter College: Department of Economics.
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