Child labor and family structure: the role of divorce

Purpose - The purpose of this paper is to investigate the role of family structure on child labor by comparing children of nuclear families headed by the father with children of single-mother families headed by the divorced mother. Design/methodology/approach - This paper uses data from Brazilian urban areas provided by the Brazilian Demographic Census of 2010. The empirical approach consists of the estimation of three treatment effect models: the Average Treatment Effect, IV Treatment Effect and Two-Stage Estimator proposed by Lewbel (2012). Findings - The main findings show that children of single-mother families headed by divorced mothers are more likely to work, compared to children living with both parents. This paper found evidence of a direct effect of family structure parents’ determinant on child participation in labor. The main hypothesis is that the absence of the father paired with exposure to family stress arising from marital dissolution is an indicator toward child labor. Practical implications - This study implies that in order to combat child labor effectively, it is important to understand deeply its several causes and consider ruptures in family structure, such as divorce, as one of these factors. In addition, location and family’s characteristics also play a role on the decision of child labor. For instance, boys living at metropolis areas have less chance to work. Family’s head education and non-work income affects positively the child well-being by reducing the probability of child labor. On the other hand, the number of siblings increases the chance of child labor. Finally, the results of this study suggest policies to raise awareness among parents about the negative effects of child labor on children during both childhood and adulthood, and that social policies need to act beyond legislation and enforcement, but including family mobilization. Originality/value - This paper estimates the impact of family structure on child labor using an empirical approach to deal with the endogeneity problem of the treatment.