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Household Choices of Child Labor and Schooling: A Simple Model with Application to Brazil

Household Choices of Child Labor and Schooling: A Simple Model with Application to Brazil This paper argues that conflicting results from previous literature—related to the effect of economic conditions on child labor—derive from different income and substitution effects implicit in different types of income variation. We use agricultural shocks to local economic activity in Brazil (coffee production) to distinguish between increases in household income and increases in the opportunity cost of time. Results show that higher household wealth is associated with lower child labor and higher schooling. Nevertheless, temporary increases in local economic activity are associated with higher child labor and lower schooling, particularly for children with poor economic backgrounds. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Human Resources University of Wisconsin Press

Household Choices of Child Labor and Schooling: A Simple Model with Application to Brazil

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Publisher
University of Wisconsin Press
ISSN
1548-8004

Abstract

This paper argues that conflicting results from previous literature—related to the effect of economic conditions on child labor—derive from different income and substitution effects implicit in different types of income variation. We use agricultural shocks to local economic activity in Brazil (coffee production) to distinguish between increases in household income and increases in the opportunity cost of time. Results show that higher household wealth is associated with lower child labor and higher schooling. Nevertheless, temporary increases in local economic activity are associated with higher child labor and lower schooling, particularly for children with poor economic backgrounds.

Journal

Journal of Human ResourcesUniversity of Wisconsin Press

Published: Jan 24, 2012

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