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

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Author Info
Partha Deb () (Hunter College, Department of Economics)
Furio Rosati () (Understanding Children's Work)

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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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Paper provided by Hunter College: Department of Economics in its series Hunter College Department of Economics Working Papers with number 02/9.

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Length: 33 pages
Date of creation: 2002
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Handle: RePEc:htr:hcecon:02/9

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  1. Deb, Partha & Trivedi, Pravin K., 2002. "The structure of demand for health care: latent class versus two-part models," Journal of Health Economics, Elsevier, vol. 21(4), pages 601-625, July. [Downloadable!] (restricted)
  2. Peter Jensen & Helena Skyt Nielsen, 1997. "Child labour or school attendance? Evidence from Zambia," Journal of Population Economics, Springer, vol. 10(4), pages 407-424. [Downloadable!] (restricted)
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  3. Ranjan, Priya, 2001. "Credit constraints and the phenomenon of child labor," Journal of Development Economics, Elsevier, vol. 64(1), pages 81-102, February. [Downloadable!] (restricted)
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  4. James J. Heckman, 2001. "Micro Data, Heterogeneity, and the Evaluation of Public Policy: Nobel Lecture," Journal of Political Economy, University of Chicago Press, vol. 109(4), pages 673-748, August. [Downloadable!] (restricted)
  5. Kaushik Basu, 1999. "Child Labor: Cause, Consequence, and Cure, with Remarks on International Labor Standards," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1083-1119, September. [Downloadable!] (restricted)
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  6. FurioCamillo Rosati & Zafiris Tzannatos, 2006. "Child Labour In Vietnam," Pacific Economic Review, Blackwell Publishing, vol. 11(1), pages 1-31, 02. [Downloadable!] (restricted)
  7. Browning, Martin & Francois Bourguignon & Pierre-Andre Chiappori & Valerie Lechene, 1994. "Income and Outcomes: A Structural Model of Intrahousehold Allocation," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1067-96, December. [Downloadable!] (restricted)
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  8. Behrman, Jere R., 1993. "Intrahousehold distribution and the family," Handbook of Population and Family Economics, in: M. R. Rosenzweig & Stark, O. (ed.), Handbook of Population and Family Economics, edition 1, volume 1, chapter 4, pages 125-187 Elsevier. [Downloadable!] (restricted)
  9. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470. [Downloadable!]
  10. Ranjan Ray, 2000. "Analysis of child labour in Peru and Pakistan: A comparative study," Journal of Population Economics, Springer, vol. 13(1), pages 3-19. [Downloadable!] (restricted)
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  11. Sin, Chor-Yiu & White, Halbert, 1996. "Information criteria for selecting possibly misspecified parametric models," Journal of Econometrics, Elsevier, vol. 71(1-2), pages 207-225. [Downloadable!] (restricted)
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  12. Jain, Dipak C & Vilcassim, Naufel J & Chintagunta, Pradeep K, 1994. "A Random-Coefficients Logit Brand-Choice Model Applied to Panel Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 12(3), pages 317-28, July.
  13. Jean-Marie Baland & James A. Robinson, 2000. "Is Child Labor Inefficient?," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 663-679, August. [Downloadable!] (restricted)
  14. Pudney, Stephen & Galassi, Francesco L & Mealli, Fabrizia, 1998. "An Econometric Model of Farm Tenures in Fifteenth-Century Florence," Economica, London School of Economics and Political Science, vol. 65(260), pages 535-56, November. [Downloadable!] (restricted)
  15. Butler, J S & Moffitt, Robert, 1982. "A Computationally Efficient Quadrature Procedure for the One-Factor Multinomial Probit Model," Econometrica, Econometric Society, vol. 50(3), pages 761-64, May. [Downloadable!] (restricted)
  16. Borjas, George J. & Sueyoshi, Glenn T., 1994. "A two-stage estimator for probit models with structural group effects," Journal of Econometrics, Elsevier, vol. 64(1-2), pages 165-182. [Downloadable!] (restricted)
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  17. Ravallion, Martin & Wodon, Quentin, 2000. "Does Child Labour Displace Schooling? Evidence on Behavioural Responses to an Enrollment Subsidy," Economic Journal, Royal Economic Society, vol. 110(462), pages C158-75, March. [Downloadable!] (restricted)
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  18. Kim, Byung-Do & Blattberg, Robert C & Rossi, Peter E, 1995. "Modeling the Distribution of Price Sensitivity and Implications for Optimal Retail Pricing," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(3), pages 291-303, July.
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jean Marie Baland, 2008. "Are Fair Trade Labels Effective Against Child Labor?," Working Papers id:1559, esocialsciences.com. [Downloadable!]
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  2. Papa Seck, 2005. "Do Parents Favor their Biological Offspring over Adopted Orphans? Theory and Evidence from Tanzania," Hunter College Department of Economics Working Papers 409, Hunter College: Department of Economics. [Downloadable!]
  3. M. Menon & F. Perali & F. Rosati, 2005. "The Shadow Wage of Child Labour: An Application to Nepal," UCW Working Paper 11, Understanding Children's Work (UCW Project). [Downloadable!]
  4. Gautam Hazarika & Sudipta Sarangi, 2005. "Household Access to Microcredit and Child Work in Rural Malawi," IZA Discussion Papers 1567, Institute for the Study of Labor (IZA). [Downloadable!]
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  5. 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. [Downloadable!]
  6. 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, Economics Department, Indiana University Bloomington. [Downloadable!]
  7. Katrina Mullan & Andreas Kontoleon, 2009. "Participation in Payments for Ecosystem Services programmes in developing countries: The Chinese Sloping Land Conversion Programme," Environmental Economy and Policy Research Working Papers 42.2009, University of Cambridge, Department of Land Economics, revised 2009. [Downloadable!]
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