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Demand for Low-Skilled Labor and Parental Investment in Children's Education: Evidence from Mexico

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Previous research has shown that school enrollment in developing countries responds to the changes in demand for low-skilled and high-skilled labor in the market. Using data from Mexico, I show that the negative effects of increases in relative demand for low-skilled labor are not limited to lower rates of school enrollment. Parents respond to the increases in labor market opportunities for low-skilled labor in the manufacturing sector by spending less time helping children with their studies and spending less on children's education while they are enrolled at school. This suggests that households respond along the intensive margin as well as on the extensive margin.

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  • Majlesi, Kaveh, 2014. "Demand for Low-Skilled Labor and Parental Investment in Children's Education: Evidence from Mexico," Working Papers 2014:5, Lund University, Department of Economics.
  • Handle: RePEc:hhs:lunewp:2014_005
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    More about this item

    Keywords

    Low-skilled labor; Parental investment; Children’s education; Human capital;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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