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How Does Child Labor Affect the Demand for Adult Labor?

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  • Kirk B. Doran

Abstract

Do employers substitute adults for children, or do they treat them as complements? Using data from a Mexican schooling experiment, I find that decreasing child farmwork is accompanied by increasing adult labor demand. This increase was not caused by treatment money reaching farm employers: there were no significant increases in harvest prices and quantities, nonlabor inputs, or nonfarm labor supply. Furthermore, coordinated movements in price and quantity can distinguish this increase in demand from changes in supply induced by the treatment’s income effects. Thus, declining child supply caused increasing adult demand: employers substituted adults for children.

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  • Kirk B. Doran, 2013. "How Does Child Labor Affect the Demand for Adult Labor?," Journal of Human Resources, University of Wisconsin Press, vol. 48(3), pages 702-735.
    • Handle: RePEc:uwp:jhriss:v:48:y:2013:iii:1:p:702-735
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    1. Emmanuel Skoufias & Susan Wendy Parker, 2001. "Conditional Cash Transfers and Their Impact on Child Work and Schooling: Evidence from the PROGRESA Program in Mexico," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2001), pages 45-96, August.
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    Cited by:

    1. Bharadwaj, Prashant, 2015. "Fertility and rural labor market inefficiencies: Evidence from India," Journal of Development Economics, Elsevier, vol. 115(C), pages 217-232.
    2. Prashant Bharadwaj & Leah K Lakdawala & Nicholas Li, 2020. "Perverse Consequences of Well Intentioned Regulation: Evidence from India’s Child Labor Ban," Journal of the European Economic Association, European Economic Association, vol. 18(3), pages 1158-1195.
    3. Ulrik Beck & Saurabh Singhal & Finn Tarp, 2016. "Coffee price volatility and intra-household labour supply: Evidence from Vietnam," WIDER Working Paper Series wp-2016-16, World Institute for Development Economic Research (UNU-WIDER).
    4. Prashant Bansode, 2013. "Perverse Consequences of Well Intentioned Regulation: Evidence from India's Child Labor Ban," Working Papers id:5555, eSocialSciences.
    5. Ulrik Beck & Saurabh Singhal & Finn Tarp, 2016. "Coffee price volatility and intra-household labour supply," WIDER Working Paper Series 016, World Institute for Development Economic Research (UNU-WIDER).

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