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Child work and schooling under trade liberalization in Indonesia

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  • Kis-Katos, Krisztina
  • Sparrow, Robert

Abstract

We examine the effects of trade liberalization on child work and schooling in Indonesia. Our estimation strategy identifies geographical differences in the effects of trade policy through district and province level exposure to reduction in import tariff barriers. We use seven rounds (1993 to 2002) of the Indonesian annual national household survey (Susenas), and relate workforce participation and school enrolment of children aged 10-15 to geographic variation in relative tariff exposure. Our main findings show that increased exposure to trade liberalization is associated with a decrease in child work and an increase in enrolment among 10 to 15 year olds. The effects of tariff reductions are strongest for children from low skill backgrounds and in rural areas. However, a dynamic analysis suggests that these effects reflect the long term benefits of trade liberalization, through economic growth and subsequent income effects, while frictions and negative adjustment effects may occur in the short term.

Suggested Citation

  • Kis-Katos, Krisztina & Sparrow, Robert, 2009. "Child work and schooling under trade liberalization in Indonesia," Proceedings of the German Development Economics Conference, Frankfurt a.M. 2009 17, Verein für Socialpolitik, Research Committee Development Economics.
  • Handle: RePEc:zbw:gdec09:17
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    References listed on IDEAS

    as
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    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Child labor and trade liberalization
      by Economic Logician in Economic Logic on 2009-09-17 19:43:00
    2. Hur påverkar friare handel barnarbete?
      by nonicoclolasos in Nonicoclolasos on 2009-09-21 14:44:06

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    More about this item

    Keywords

    child labor; schooling; trade liberalization;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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