The Consequences of Child Market Work on the Growth of Human Capital

Armand Sim, Daniel Suryadarma, Asep Suryahadi

    Research output: Contribution to journalArticle

    Abstract

    The paper measures the effect of child market work on the long-term growth of human capital, focusing on the output of the human capital production: mathematics skills, cognitive skills, pulmonary function, and educational attainment. Our full sample is drawn from a rich longitudinal dataset Indonesia Family Life Survey (IFLS). We address endogeneity of child market work using provincial legislated minimum wage as the instrument. Our instrumental variable estimation shows that child labor negatively affects mathematics skills and pulmonary function, but not cognitive skills and educational attainment. We find heterogeneities in type of work. Those who work outside of family business have lower educational attainment than those working for family business.
    Original languageEnglish
    Pages (from-to)144-155pp
    JournalWorld Development
    Volume91
    DOIs
    Publication statusPublished - 2017

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