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Work versus School? The Effect of Work on Educational Expenditures for Children in Mexico

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  • Kaletski, Elizabeth

    (Ithaca College)

Abstract

This paper explores the impact of child labor on child welfare, with a specific focus on the relationship between working and education. I look at the empirical relationship between working and educational expenditure budget shares for children age 5-14 in Mexico. I accomplish this using a household fixed effects model and data from two waves of the Mexican Family Life Survey (MxFLS). The results indicate that working increases school expenditure shares for working children. In particular, on average, girls engaged in paid work have total annual education expenditure shares that are 48.6% higher than girls who do not work. This relationship varies significantly with characteristics of both the individual and the household, including the child's gender and type of work performed, as well as the household's income, location, and relative female bargaining power. The results indicate that working does not appear to translate into a decrease in welfare and the additional expenditure is directed towards goods that improve the quality of education.

Suggested Citation

  • Kaletski, Elizabeth, 2016. "Work versus School? The Effect of Work on Educational Expenditures for Children in Mexico," IZA Discussion Papers 10054, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp10054
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    More about this item

    Keywords

    child labor; education; child welfare; child incentives; household decision making;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • 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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