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

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Abstract

We develop a semi-parametric latent class random effects multinomial logit model to distinguish between observed and unobserved household characteristics as determinants of child labor, school attendance and idleness. We find that much of the substitution between activities as a response to changes in covariates is between attending school and being idle, with work being rather resistant. Unobserved household heterogeneity is substantial and swamps observed income and wealth heterogeneity. A characterization of households into latent types reveals very different instrinsic propensities towards the three children's activities and that households with a high propensity to send their children to school are poorer and have less educated parents compared to households in the other classes.

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  • Partha Deb & Furio Rosati, 2002. "Determinants of Child Labor and School Attendance: The Role of Household Unobservables," Economics Working Paper Archive at Hunter College 02/9, Hunter College Department of Economics.
  • Handle: RePEc:htr:hcecon:02/9
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    Cited by:

    1. Eric V. Edmonds, 2005. "Does Child Labor Decline with Improving Economic Status?," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
    2. 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, Department of Economics, Indiana University Bloomington.
    3. Lanzona, Leonardo & Aldaba, Fernando T. & Tamangan, Ronald J., 2006. "An Empirical Analysis on the Tradeoff between Schooling and Child Labor in the Philippines," Philippine Journal of Development PJD 2004 Vol. XXXI No. 2-, Philippine Institute for Development Studies.
    4. Baland, Jean-Marie & Duprez, Cédric, 2007. "Are Fair Trade Labels Effective Against Child Labour?," CEPR Discussion Papers 6259, C.E.P.R. Discussion Papers.
    5. Jayanta Sarkar & Dipanwita Sarkar, 2016. "Why Does Child Labor Persist With Declining Poverty?," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 139-158, January.
    6. 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.
    7. 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.
    8. Krauss, Alexander, 2017. "Understanding child labour beyond the standard economic assumption of monetary poverty," LSE Research Online Documents on Economics 68497, London School of Economics and Political Science, LSE Library.
    9. Kulsoom, Rafia, 2007. "Child Labor at District Level: A Case Study of Rawalpindi," MPRA Paper 17224, University Library of Munich, Germany.
    10. 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.
    11. Debebe, Z.Y., 2010. "Child labor, agricultural shocks and labor sharing in rural Ethiopia," ISS Working Papers - General Series 18702, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    12. Takashi KUROSAKI & Seiro ITO & Nobuhiko FUWA & Kensuke KUBO & Yasuyuki SAWADA, 2006. "Child Labor And School Enrollment In Rural India: Whose Education Matters?," The Developing Economies, Institute of Developing Economies, vol. 44(4), pages 440-464, December.
    13. Carvalho, José Raimundo & Marinho, Emerson & Loria, Francesca, 2012. "Idleness, Returns to Education and Child Labor," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 66(4), December.
    14. Amarante, Véronica & Ferrando, Mery & Vigorito, Andrea, 2011. "School Attendance, Child Labor and Cash Transfer: An impact evaluation of PANES," PEP Policy Briefs 164618, Partnership for Economic Policy (PEP).
    15. VERHEYDEN Bertrand & FAYE Ousmane, 2011. "Fertility and Child Occupation: Theory and Evidence from Senegal," LISER Working Paper Series 2011-59, LISER.
    16. Daniela Vuri, 2010. "The Effect of Availability of School and Distance to School on Children's Time Allocation in Ghana," LABOUR, CEIS, vol. 24(s1), pages 46-75, December.
    17. Jellal, Mohamed & Tarbalouti, Essaid, 2012. "Institutions éducation et travail des enfants [Institutions education and child labor]," MPRA Paper 39384, University Library of Munich, Germany.
    18. 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.
    19. Mukherjee, Dipa, 2010. "Child workers in India: an overview of macro dimensions," MPRA Paper 35049, University Library of Munich, Germany, revised 2011.
    20. 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.
    21. Federico Perali & Furio Rosati & Martina Menon, 2004. "Estimation of the Contribution of Child Labour to the Formation of Rural Incomes: An Application to Nepal," CHILD Working Papers wp10_05, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    22. repec:fgv:epgrbe:v:66:n:4:a:1 is not listed on IDEAS
    23. 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.

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