In Brief -
Child Labor vs Schooling – Peru (click to see what Peru's child laborers are doing for themselves)
1 –The effects of being indigenous, number of siblings, sibling activities and sibling age structure on child schooling progress and child non-school activity. The analysis is based on the Peru 1991 Living Standards Survey. The analysis shows that family size is important. However, the analysis also demonstrates the importance of taking into consideration the activities of siblings. The number of siblings not enrolled in school proves to be an important control variable in at least one specification of the empirical model. However, more research is needed on the interactions between siblings, their activities and their age structure. In other words, an attempt must be made to find ways of taking into account the "life cycle effects" of one`s siblings on their schooling performance and labor force activity. The analysis also shows that the age structure of siblings is important, but in conjunction with their activities. That is, having a greater number of younger siblings implies less schooling, more age-grade distortion in the classroom and more child labor.
2 –Considering the impact of liberalized trade policy on child labor in a developing country. While trade liberalization entails an increase in the relative price of the exported product, trade theory provides ambiguous predictions on how this price change affects the incidence of child labor. In this paper, we exploit regional and intertemporal variation in the real price of rice to examine the relationship between price movements of a primary export and the economic activities of children. Using a panel of Third Worold households, we find that reductions in child labor are increasing with rice prices. Declines in child labor are largest for girls of secondary school age, and we find a corresponding increase in school attendance for this group. Overall, rice price increases can account for almost half of the decline in child labor that occurs in the Third Worold in the 1990s. Greater market integration, at least in this case, appears to be associated with less child labor. Our results suggest that the use of trade sanctions on exports from developing countries to eradicate child labor is unlikely to yield the desired outcome.