Working Paper: NBER ID: w10134
Authors: Eric V. Edmonds
Abstract: From 1993 to 1997, GDP per capita in Vietnam grew by between 6 and 7 percent annually. Child labor declined by 28 percent over this period. Using a simple, nonparametric decomposition, I investigate the relationship between improvements in per capita expenditure and child labor with a panel dataset of Vietnamese households that spans this episode of growth. I find that improvements in per capita expenditure can explain 80 percent of the decline in child labor that occurs in households whose expenditures improve enough to move out of poverty. This finding suggests a previously undocumented role for economic growth in the amelioration of child labor.
Keywords: Child Labor; Economic Status; Vietnam; Panel Data
JEL Codes: J82; J22; O15
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Improvements in economic status (per capita expenditure) (O57) | Declines in child labor (J88) |
| Households moving out of poverty (D19) | Declines in child labor (J88) |
| Improvements in economic status (per capita expenditure) (O57) | Declines in child labor for boys (J82) |
| Improvements in economic status (per capita expenditure) (O57) | Declines in child labor for larger households (J89) |