Determinants of Child Labour and School Attendance: The Role of Household Unobservables

Understanding Children's Work (UCW) Working Paper

34 Pages Posted: 28 Nov 2003

See all articles by Partha Deb

Partha Deb

City University of New York, CUNY Hunter College - Department of Economics

Furio C. Rosati

United Nations - UCW Program; University of Rome Tor Vergata - Faculty of Economics

Date Written: December 2002

Abstract

We develop a random effects multinomial logit model to distinguish between unobserved and observed household characteristics as determinants of child labor and school attendance. Using a semi-parametric approach, the random effect is drawn from a discrete distribution of latent classes of households. The results show that household-level unobserved heterogeneity is substantial. Household-level unobserved heterogeneity swamps observed income and wealth heterogeneity. Households that belong to the class with a high latent propensity to send their children to work are not influenced by marginal changes in the explanatory variables. Households most sensitive to changes in explanatory variables are those with a high propensity to have their children neither in school nor working. Policy interventions and changes in external conditions are likely to produce large changes in the behavior of this group of families.

Keywords: household heterogeneity, latent class models, random effects

JEL Classification: C25, D13, O12

Suggested Citation

Deb, Partha and Rosati, Furio C., Determinants of Child Labour and School Attendance: The Role of Household Unobservables (December 2002). Understanding Children's Work (UCW) Working Paper. Available at SSRN: https://ssrn.com/abstract=473502 or http://dx.doi.org/10.2139/ssrn.473502

Partha Deb

City University of New York, CUNY Hunter College - Department of Economics ( email )

695 Park Avenue
New York, NY 10021
United States

Furio C. Rosati (Contact Author)

United Nations - UCW Program ( email )

ILO Office for Italy and San Marino
Via Panisperna 28
I-00186 Rome
Italy

HOME PAGE: http://www.ucw-project.org

University of Rome Tor Vergata - Faculty of Economics ( email )

Via Columbia n.2
Rome, rome 00100
Italy
6 2020 500 (Fax)

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