IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/2762.html
   My bibliography  Save this paper

The (positive) effect of macroeconomic crises on the schoolingand employment decisions of children in a middle-income country

Author

Listed:
  • Schady, Norbert R.

Abstract

The impact of macroeconomic crises on parents'investments in the human capital of their children is a widely contested issue. The author analyzes the effects of the profound macroeconomic crisis in Peru in 1988-92 on the schooling and employment decisions made by urban school-age children. He arrives at two basic findings: First, the crisis had no effect on the attendance rates of school-age children. But the share of children who were both employed and in school fell significantly during the crisis. Second, mean educational attainment was significantly higher for children who were exposed to the crisis than for those who were not. THe author argues that these findings may be related: children who are not employed have more time available and may therefore put more effort into school. He concludes with a discussion of the implications of his findings for the design of appropriate social protection policies.

Suggested Citation

  • Schady, Norbert R., 2002. "The (positive) effect of macroeconomic crises on the schoolingand employment decisions of children in a middle-income country," Policy Research Working Paper Series 2762, The World Bank.
    • Handle: RePEc:wbk:wbrwps:2762
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2002/02/16/000094946_02020604053351/Rendered/PDF/multi0page.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jaime Saavedra-Chanduví, 1998. "¿Crisis real o crisis de expectativas? El empleo en el Perú antes y después de las reformas estructurales," Research Department Publications 4149, Inter-American Development Bank, Research Department.
    2. 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.
    3. Claudia Goldin, 1999. "Egalitarianism and the Returns to Education during the Great Transformation of American Education," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages 65-94, December.
    4. Nora Lustig, 2000. "Crises and the Poor: Socially Responsible Macroeconomics," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2000), pages 1-30, August.
    5. Paxson, Christina & Schady, Norbert, 1999. "Do school facilities matter? : the case of the Peruvian Social Fund (FONCODES)," Policy Research Working Paper Series 2229, The World Bank.
    6. Flug, Karnit & Spilimbergo, Antonio & Wachtenheim, Erik, 1998. "Investment in education: do economic volatility and credit constraints matter?," Journal of Development Economics, Elsevier, vol. 55(2), pages 465-481, April.
    7. Rosenzweig, Mark R & Evenson, Robert E, 1977. "Fertility, Schooling, and the Economic Contribution of Children in Rural India: An Econometric Analysis," Econometrica, Econometric Society, vol. 45(5), pages 1065-1079, July.
    8. Peter Jensen & Helena Skyt Nielsen, 1997. "Child labour or school attendance? Evidence from Zambia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 10(4), pages 407-424.
    9. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    10. 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.
    11. Norbert R. Schady, 2002. "Picking the Poor: Indicators for Geographic Targeting in Peru," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(3), pages 417-433, September.
    12. Glewwe, Paul & Jacoby, Hanan G, 1995. "An Economic Analysis of Delayed Primary School Enrollment in a Low Income Country: The Role of Early Childhood Nutrition," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 156-169, February.
    13. George Psacharopoulos, 1997. "Child labor versus educational attainment Some evidence from Latin America," Journal of Population Economics, Springer;European Society for Population Economics, vol. 10(4), pages 377-386.
    14. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    15. Jacoby, Hanan G, 1994. "Borrowing Constraints and Progress through School: Evidence from Peru," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 151-160, February.
    16. Willis, Robert J., 1987. "Wage determinants: A survey and reinterpretation of human capital earnings functions," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 10, pages 525-602, Elsevier.
    17. Hideo Akabayashi & George Psacharopoulos, 1999. "The trade-off between child labour and human capital formation: A Tanzanian case study," Journal of Development Studies, Taylor & Francis Journals, vol. 35(5), pages 120-140.
    18. repec:eee:labchp:v:1:y:1986:i:c:p:525-602 is not listed on IDEAS
    19. Suzanne Duryea & Jere R. Behrman & Miguel Székely, 1999. "Schooling Investments and Aggregate Conditions: A Household Survey-Based Approach for Latin America and the Caribbean," IDB Publications (Working Papers) 6457, Inter-American Development Bank.
    20. Kaushik Basu, 1999. "International Labor Standards and Child Labor," Challenge, Taylor & Francis Journals, vol. 42(5), pages 80-93, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Skoufias, Emmanuel, 2003. "Economic Crises and Natural Disasters: Coping Strategies and Policy Implications," World Development, Elsevier, vol. 31(7), pages 1087-1102, July.
    2. Murrugarra, Edmundo & Signoret, Jose, 2003. "Vulnerability in consumption, education, and health - evidence from Moldova during the Russian crisis," Policy Research Working Paper Series 3010, The World Bank.
    3. Jorge A. Paz, 2008. "Cambios en el ingreso del hogar y sus efectos sobre la escolaridad de menores (Argentina, 1995-2003)," Working Papers 2, Instituto de Estudios Laborales y del Desarrollo Económico (IELDE) - Universidad Nacional de Salta - Facultad de Ciencias Económicas, Jurídicas y Sociales.
    4. Duryea, Suzanne & Arends-Kuenning, Mary, 2003. "School Attendance, Child Labor and Local Labor Market Fluctuations in Urban Brazil," World Development, Elsevier, vol. 31(7), pages 1165-1178, July.
    5. Emmanuel Skoufias & Susan Parker, 2006. "Job loss and family adjustments in work and schooling during the Mexican peso crisis," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(1), pages 163-181, February.
    6. Martin Ravallion, 2003. "Targeted transfers in poor countries : revisiting the trade-offs and policy options," Social Protection Discussion Papers and Notes 27869, The World Bank.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nadeem Ilahi & Peter F. Orazem & Guilherme Sedlacek, 2009. "How Does Working as a Child Affect Wages, Income, and Poverty as an Adult?," Palgrave Macmillan Books, in: Peter F. Orazem & Guilherme Sedlacek & Zafiris Tzannatos (ed.), Child Labor and Education in Latin America, chapter 5, pages 87-101, Palgrave Macmillan.
    2. World Bank, 2001. "Brazil : Eradicating Child Labor in Brazil," World Bank Publications - Reports 15465, The World Bank Group.
    3. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2009. "The Effects of Multinational Production on Wages and Working Conditions in Developing Countries," World Scientific Book Chapters, in: Globalization And International Trade Policies, chapter 17, pages 623-687, World Scientific Publishing Co. Pte. Ltd..
    4. Jean-Pierre Lachaud, 2008. "Le travail des enfants et la pauvreté en Afrique : un réexamen appliqué au Burkina Faso," Economie & Prévision, La Documentation Française, vol. 0(5), pages 47-65.
    5. Lee, Jieun & Kim, Hyoungjong & Rhee, Dong-Eun, 2021. "No harmless child labor: The effect of child labor on academic achievement in francophone Western and Central Africa," International Journal of Educational Development, Elsevier, vol. 80(C).
    6. Karina Acevedo González & Raúl Quejada Pérez & Martha Yánez Contreras, 2011. "Determinantes y consecuencias del trabajo infantil: un análisis de la literatura," Revista Facultad de Ciencias Económicas, Universidad Militar Nueva Granada, June.
    7. Emanuela di Gropello, 2006. "Meeting the Challenges of Secondary Education in Latin America and East Asia : Improving Efficiency and Resource Mobilization," World Bank Publications - Books, The World Bank Group, number 7173.
    8. Moshe Hazan & Binyamin Berdugo, 2002. "Child Labour, Fertility, and Economic Growth," Economic Journal, Royal Economic Society, vol. 112(482), pages 810-828, October.
    9. Patrick M. Emerson & André Portela Souza, 2011. "Is Child Labor Harmful? The Impact of Working Earlier in Life on Adult Earnings," Economic Development and Cultural Change, University of Chicago Press, vol. 59(2), pages 345-385.
    10. Owen O'Donnell & Furio C. Rosati & Eddy van Doorslaer, 2005. "Health effects of child work: Evidence from rural Vietnam," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(3), pages 437-467, September.
    11. Lorena Alcazar & Silvio Rendon & Erik Wachtenheim, 2002. "Working and Studying in Rural Latin America: Critical Decisions of Adolescence," Research Department Publications 3162, Inter-American Development Bank, Research Department.
    12. Ray, Ranjan, 2000. "Child Labor, Child Schooling, and Their Interaction with Adult Labor: Empirical Evidence for Peru and Pakistan," The World Bank Economic Review, World Bank, vol. 14(2), pages 347-367, May.
    13. O.O'Donnell & F.Rosati & E.van Doorslaer, 2003. "Health Effects of Children's Work: Evidence from Vietnam," UCW Working Paper 2, Understanding Children's Work (UCW Programme).
    14. Eric V. Edmonds, 2005. "Does Child Labor Decline with Improving Economic Status?," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
    15. Mussa, Essa Chanie & Mirzabaev, Alisher & Admassie, Assefa & Nshakira-Rukundo, Emmanuel & von Braun, Joachim, 2019. "Does childhood work impede long-term human capital accumulation? Empirical evidence from rural Ethiopia," International Journal of Educational Development, Elsevier, vol. 66(C), pages 234-246.
    16. Sudha Narayanan & Sowmya Dhanaraj, 2018. "Child Work and Schooling in Rural India: What Do Time Use Data Say about Trade-offs and Drivers of Human Capital Investment?," Indian Journal of Human Development, , vol. 12(3), pages 378-400, December.
    17. G. Bellettini & C. Berti Ceroni, 2000. "Compulsory schooling laws and the cure against child labor," Working Papers 394, Dipartimento Scienze Economiche, Universita' di Bologna.
    18. Bell, Clive & Gersbach, Hans, 2009. "Child Labor And The Education Of A Society," Macroeconomic Dynamics, Cambridge University Press, vol. 13(2), pages 220-249, April.
    19. Moussa Keita, 2014. "Pauvreté et arbitrage entre scolarisation et travail des enfants au Mali," Working Papers halshs-01064821, HAL.
    20. Han PHOUMIN & Seiichi FUKUI, 2006. "Cambodian Child's Wage Rate, Human Capital and Hours Worked Trade-off: Simple Theoretical and Empirical Evidence for Policy Implications," GSICS Working Paper Series 6, Graduate School of International Cooperation Studies, Kobe University.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:2762. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.