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Globalization, Gender and Development: The Effect of Parental Labor Supply on Child Schooling

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  • Beyza Ural Marchand
  • Ray Rees
  • Raymond Riezman

Abstract

Tariff reductions have gender-specific effects on the labor market that change the relative bargaining power within households, which in turn affects child outcomes. We estimate how changes in parental labor supply due to these tariff reductions affect child schooling by focusing on young school-age children who are otherwise not active in the labor market. Using micro-level data from India, we find that an increase in female labor supply due to the tariff reductions was associated with a 7 percentage points higher schooling probability for children between the ages of 7 and 10. This result explains approximately 26 percent of the improvement in schooling for this age group between the years 1988 and 2000

Suggested Citation

  • Beyza Ural Marchand & Ray Rees & Raymond Riezman, 2011. "Globalization, Gender and Development: The Effect of Parental Labor Supply on Child Schooling," CESifo Working Paper Series 3341, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_3341
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    File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp3341.pdf
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    References listed on IDEAS

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    1. Bronars, Stephen G & Grogger, Jeff, 1994. "The Economic Consequences of Unwed Motherhood: Using Twin Births as a Natural Experiment," American Economic Review, American Economic Association, vol. 84(5), pages 1141-1156, December.
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    3. Hasan, Rana & Mitra, Devashish & Ranjan, Priya & Ahsan, Reshad N., 2012. "Trade liberalization and unemployment: Theory and evidence from India," Journal of Development Economics, Elsevier, vol. 97(2), pages 269-280.
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    5. Anderson, Siwan & Eswaran, Mukesh, 2009. "What determines female autonomy? Evidence from Bangladesh," Journal of Development Economics, Elsevier, vol. 90(2), pages 179-191, November.
    6. Jungmin Lee, 2008. "Sibling size and investment in children’s education: an asian instrument," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(4), pages 855-875, October.
    7. Philip Sauré & Hosny Zoabi, 2009. "Effects of Trade on Female Labor Force Participation," Working Papers 2009-12, Swiss National Bank.
    8. David Lam & Suzanne Duryea, 1999. "Effects of Schooling on Fertility, Labor Supply, and Investments in Children, with Evidence from Brazil," Journal of Human Resources, University of Wisconsin Press, vol. 34(1), pages 160-192.
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    More about this item

    Keywords

    household bargaining; development; globalization; schooling;

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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