Parental income, child labour, and human capital accumulation: evidence from trade liberalisation in India

Joseph Boniface Ajefu

Development in Practice, 2018, vol. 28, issue 8, 1071-1082

Abstract: This article examines whether parental income affects decisions on children’s human capital investment and labour market participation. India’s sudden and unanticipated trade liberalisation was a national policy that created an exogenous variation in industry-specific tariff rates over time. The policy consequently led to variation in workers’ earnings according to their industrial affiliations. The disparity in earnings across industries provides a good setting for identifying the causal effect of parents’ income on child’s labour and schooling, using an instrumental variables approach. The study finds a positive effect of parents’ income on children’s schooling but a negative effect on children’s work. The magnitude of effect, however, is higher for girls compared to boys.

Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/09614524.2018.1505828 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:cdipxx:v:28:y:2018:i:8:p:1071-1082

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/cdip20

DOI: 10.1080/09614524.2018.1505828

Access Statistics for this article

Development in Practice is currently edited by Emily Finlay

More articles in Development in Practice from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().