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Child work and schooling under trade liberalization in Indonesia

Author

Listed:
  • Krisztina Kis-Katos
  • Robert Sparrow

    (Department of International Economic Policy, University of Freiburg)

Abstract

We examine the effects of trade liberalization on child work and schooling in Indonesia. Our estimation strategy identifies geographical differences in the effects of trade policy through district and province level exposure to reduction in import tariff barriers. We use seven rounds (1993 to 2002) of the Indonesian annual national household survey (Susenas), and relate workforce participation and school enrolment of children aged 10-15 to geographic variation in relative tariff exposure. Our main findings show that increased exposure to trade liberalization is associated with a decrease in child work and an increase in enrolment among 10 to 15 year olds. The effects of tariff reductions are strongest for children from low skill backgrounds and in rural areas. However, a dynamic analysis suggests that these effects reflect the long term benefits of trade liberalization, through economic growth and subsequent income effects, while frictions and negative adjustment effects may occur in the short term.

Suggested Citation

  • Krisztina Kis-Katos & Robert Sparrow, 2009. "Child work and schooling under trade liberalization in Indonesia," Discussion Paper Series 8, Department of International Economic Policy, University of Freiburg, revised Mar 2009.
    • Handle: RePEc:fre:wpaper:8
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    References listed on IDEAS

    as
    1. Lisa Cameron, 2001. "The Impact Of The Indonesian Financial Crisis On Children: An Analysis Using The 100 Villages Data," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 37(1), pages 43-64.
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    Blog mentions

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    1. Child labor and trade liberalization
      by Economic Logician in Economic Logic on 2009-09-17 19:43:00
    2. Hur påverkar friare handel barnarbete?
      by nonicoclolasos in Nonicoclolasos on 2009-09-21 14:44:06

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    More about this item

    Keywords

    child labor; trade;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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