Children working and attending school simultaneously: Tradeoffs made in a financial crisis
Wu, Treena and Borghans, Lex (2009). Children working and attending school simultaneously: Tradeoffs made in a financial crisis.
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Author Wu, Treena
Borghans, LexTitle Children working and attending school simultaneously: Tradeoffs made in a financial crisis Publication Date 2009 Abstract Using the Asian Financial Crisis as a source of exogenous variation, we study the behavior of Indonesian child workers aged 7 ��� 15. We investigate their behavior using time allocation patterns. We find that children in the lowest quartile of the household income distribution work more hours per week when income decreases. However while working, they still attend school. They continue to accumulate human capital from a choice of sources of skill formation i) formal school ii) non-formal school (religious education) (iii) informal school (education within the home). But the situation is worsened by the crisis for some children who drop out completely from school and only work. Using the Becker view on human capital measured as productive skills, we find that the children simultaneously work and build human capital but tradeoffs have to be made. The quality of skills attained is questionable. This has implications for whether a working child aged 6 - 15 will eventually have the qualifications to enter the formal labor market. JEL Classification: J24, J13, D82, O15 Keywords: Human Capital, Child Labor, Time Allocation -
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