Why Should We Care About Child Labor? The Education, Labor Market, and Health Consequences of Child Labor

Although there is extensive literature on the determinants of child labor and many initiatives aimed at combating it, there is limited evidence on the consequences of child labor on socioeconomic outcomes such as education, wages, and health. The authors evaluate the causal effect of child labor par...

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Main Authors: Beegle, Kathleen, Dehejia, Rajeev, Gatti, Roberta
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2005/01/5594964/care-child-labor-education-labor-market-health-consequences-child-labor
http://hdl.handle.net/10986/8897
id okr-10986-8897
recordtype oai_dc
spelling okr-10986-88972021-04-23T14:02:42Z Why Should We Care About Child Labor? The Education, Labor Market, and Health Consequences of Child Labor Beegle, Kathleen Dehejia, Rajeev Gatti, Roberta AGRICULTURAL PRODUCTION BORROWING CHILD EARNINGS CHILD LABOR CHILDHOOD DEMOCRACY DEVELOPED COUNTRIES DISCOUNT RATES ECONOMIC COSTS ECONOMIC GROWTH ECONOMICS EMPLOYMENT EQUILIBRIUM EXPENDITURES FARMS GIFTED CHILDREN HUMAN CAPITAL INCOME INTERNATIONAL LABOUR ORGANIZATION LABOR DISTRIBUTION LABOR MARKET LABOR MARKETS LIVING STANDARDS MARGINAL PRODUCTIVITY MARKET WAGE MATHEMATICS OUTPUTS PARENTS PRICE DIFFERENCES PRIVATE COSTS PRODUCTION TECHNOLOGY PRODUCTIVITY TRANSITION ECONOMIES WAGE INCREASES WAGES WORKERS WORKING CHILDREN WORKING HOURS Although there is extensive literature on the determinants of child labor and many initiatives aimed at combating it, there is limited evidence on the consequences of child labor on socioeconomic outcomes such as education, wages, and health. The authors evaluate the causal effect of child labor participation on these outcomes using panel data from Vietnam and an instrumental variables strategy. Five years subsequent to the child labor experience, they find significant negative effects on school participation and educational attainment, but also find substantially higher earnings for those (young) adults who worked as children. The authors find no significant effects on health. Over a longer horizon, they estimate that from age 30 onward the forgone earnings attributable to lost schooling exceed any earnings gain associated with child labor and that the net present discounted value of child labor is positive for discount rates of 11.5 percent or higher. The authors show that child labor is prevalent among households likely to have higher borrowing costs, that are farther from schools, and whose adult members experienced negative returns to their own education. This evidence suggests that reducing child labor will require facilitating access to credit and will also require households to be forward looking. 2012-06-22T22:05:42Z 2012-06-22T22:05:42Z 2005-01 http://documents.worldbank.org/curated/en/2005/01/5594964/care-child-labor-education-labor-market-health-consequences-child-labor http://hdl.handle.net/10986/8897 English Policy Research Working Paper; No. 3479 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic AGRICULTURAL PRODUCTION
BORROWING
CHILD EARNINGS
CHILD LABOR
CHILDHOOD
DEMOCRACY
DEVELOPED COUNTRIES
DISCOUNT RATES
ECONOMIC COSTS
ECONOMIC GROWTH
ECONOMICS
EMPLOYMENT
EQUILIBRIUM
EXPENDITURES
FARMS
GIFTED CHILDREN
HUMAN CAPITAL
INCOME
INTERNATIONAL LABOUR ORGANIZATION
LABOR DISTRIBUTION
LABOR MARKET
LABOR MARKETS
LIVING STANDARDS
MARGINAL PRODUCTIVITY
MARKET WAGE
MATHEMATICS
OUTPUTS
PARENTS
PRICE DIFFERENCES
PRIVATE COSTS
PRODUCTION TECHNOLOGY
PRODUCTIVITY
TRANSITION ECONOMIES
WAGE INCREASES
WAGES
WORKERS
WORKING CHILDREN
WORKING HOURS
spellingShingle AGRICULTURAL PRODUCTION
BORROWING
CHILD EARNINGS
CHILD LABOR
CHILDHOOD
DEMOCRACY
DEVELOPED COUNTRIES
DISCOUNT RATES
ECONOMIC COSTS
ECONOMIC GROWTH
ECONOMICS
EMPLOYMENT
EQUILIBRIUM
EXPENDITURES
FARMS
GIFTED CHILDREN
HUMAN CAPITAL
INCOME
INTERNATIONAL LABOUR ORGANIZATION
LABOR DISTRIBUTION
LABOR MARKET
LABOR MARKETS
LIVING STANDARDS
MARGINAL PRODUCTIVITY
MARKET WAGE
MATHEMATICS
OUTPUTS
PARENTS
PRICE DIFFERENCES
PRIVATE COSTS
PRODUCTION TECHNOLOGY
PRODUCTIVITY
TRANSITION ECONOMIES
WAGE INCREASES
WAGES
WORKERS
WORKING CHILDREN
WORKING HOURS
Beegle, Kathleen
Dehejia, Rajeev
Gatti, Roberta
Why Should We Care About Child Labor? The Education, Labor Market, and Health Consequences of Child Labor
relation Policy Research Working Paper; No. 3479
description Although there is extensive literature on the determinants of child labor and many initiatives aimed at combating it, there is limited evidence on the consequences of child labor on socioeconomic outcomes such as education, wages, and health. The authors evaluate the causal effect of child labor participation on these outcomes using panel data from Vietnam and an instrumental variables strategy. Five years subsequent to the child labor experience, they find significant negative effects on school participation and educational attainment, but also find substantially higher earnings for those (young) adults who worked as children. The authors find no significant effects on health. Over a longer horizon, they estimate that from age 30 onward the forgone earnings attributable to lost schooling exceed any earnings gain associated with child labor and that the net present discounted value of child labor is positive for discount rates of 11.5 percent or higher. The authors show that child labor is prevalent among households likely to have higher borrowing costs, that are farther from schools, and whose adult members experienced negative returns to their own education. This evidence suggests that reducing child labor will require facilitating access to credit and will also require households to be forward looking.
format Publications & Research :: Policy Research Working Paper
author Beegle, Kathleen
Dehejia, Rajeev
Gatti, Roberta
author_facet Beegle, Kathleen
Dehejia, Rajeev
Gatti, Roberta
author_sort Beegle, Kathleen
title Why Should We Care About Child Labor? The Education, Labor Market, and Health Consequences of Child Labor
title_short Why Should We Care About Child Labor? The Education, Labor Market, and Health Consequences of Child Labor
title_full Why Should We Care About Child Labor? The Education, Labor Market, and Health Consequences of Child Labor
title_fullStr Why Should We Care About Child Labor? The Education, Labor Market, and Health Consequences of Child Labor
title_full_unstemmed Why Should We Care About Child Labor? The Education, Labor Market, and Health Consequences of Child Labor
title_sort why should we care about child labor? the education, labor market, and health consequences of child labor
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2005/01/5594964/care-child-labor-education-labor-market-health-consequences-child-labor
http://hdl.handle.net/10986/8897
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