Income shocks and child labor: evidence for the rural Dominican Republic

E. Rodriguez and L. Vieira Costa

No 277453, 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia from International Association of Agricultural Economists

Abstract: Child labor is a social problem with economic consequences for the growth and development of countries in the short and long term, affecting children's physical and mental development because it interferes with their future wages. In paper we seek to investigate how negative income shocks and economic assets are associated with child labor and school attendance in the Dominican Republic. This issue is particularly important in rural areas, where people are more prone to suffer exogenous shocks and have fewer tools to mitigate them. We used microdata from the Encuesta Nacional de Hogares de Prop sitos Multiples (ENHOGAR) for 2010. Our The empirical strategy was based on a bivariate probit for considering that the decision to allocate children's time to work and/or study are interdependent. The results show that assets positively affect the decision to allocate children towards schooling. On the other hand, negative household income shocks increase the probability of child labor. We also find evidence that in Dominican Republic, children's time does not seem to compete with his or her time in school and the presence of assets is not able to reduce the negative effects of the shocks. Acknowledgement :

Keywords: Labor; and; Human; Capital (search for similar items in EconPapers)
Date: 2018-07
New Economics Papers: this item is included in nep-dev
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae18:277453

DOI: 10.22004/ag.econ.277453

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