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The Consequences of Child Market Work on the Growth of Human Capital

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  • Sim, Armand
  • Suryadarma, Daniel
  • Suryahadi, Asep

Abstract

The paper measures the effect of child market work on the long-term growth of human capital, focusing on the output of the human capital production: mathematics skills, cognitive skills, pulmonary function, and educational attainment. Our full sample is drawn from a rich longitudinal dataset Indonesia Family Life Survey (IFLS). We address endogeneity of child market work using provincial legislated minimum wage as the instrument. Our instrumental variable estimation shows that child labor negatively affects mathematics skills and pulmonary function, but not cognitive skills and educational attainment. We find heterogeneities in type of work. Those who work outside of family business have lower educational attainment than those working for family business.

Suggested Citation

  • Sim, Armand & Suryadarma, Daniel & Suryahadi, Asep, 2017. "The Consequences of Child Market Work on the Growth of Human Capital," World Development, Elsevier, vol. 91(C), pages 144-155.
  • Handle: RePEc:eee:wdevel:v:91:y:2017:i:c:p:144-155
    DOI: 10.1016/j.worlddev.2016.11.007
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    Cited by:

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    2. Ariane Utomo & Anna Reimondos & Iwu Utomo & Peter McDonald & Terence H. Hull, 2014. "What happens after you drop out? Transition to adulthood among early school-leavers in urban Indonesia," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 30(41), pages 1189-1218.
    3. Garimella Bhaskar & Shenoy Sandeep & Pai Rashmi Yogesh & Shetty Rishali, 2018. "Structured Education for Sustainable Employment: Technology Enabled Queueing Theory Applications," Foundations of Management, Sciendo, vol. 10(1), pages 75-86, May.
    4. Hidayatina, Achsanah & Garces-Ozanne, Arlene, 2019. "Can cash transfers mitigate child labour? Evidence from Indonesia’s cash transfer programme for poor students in Java," World Development Perspectives, Elsevier, vol. 15(C), pages 1-1.
    5. Shahraki, Saeed Zanganeh & Fouladiyan, Majid & Toosifar, Jamal, 2020. "Child labor processes in the city of Mashhad: A narrative study," Children and Youth Services Review, Elsevier, vol. 119(C).

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    More about this item

    Keywords

    child labor; human capital; skills; health; Indonesia;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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