The relationship between product market integration and child labor supply: evidence from Vietnam

Type Journal Article - Dartmouth College Manuscript
Title The relationship between product market integration and child labor supply: evidence from Vietnam
Author(s)
Publication (Day/Month/Year) 2003
URL http://www.dartmouth.edu/~eedmonds/cornell.pdf
Abstract
This paper considers the impact of liberalized trade policy on child labor in adeveloping 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 affectsthe incidence of child labor. In this paper, we exploit regional and intertemporal variation in thereal price of rice to examine the relationship between price movements of a primary export andthe economic activities of children. Using a panel of Vietnamese households, we find that increases in rice prices are associated with declines in child labor. Declines in child labor are largest in households with large landholdings, apparently because they are well situated tocapture the additional rental income to land associated with the price increases. Overall, riceprice increases can account for almost half of the decline in child labor that occurs in Vietnam inthe 1990s. Greater market integration, at least in this case, appears to be associated with less child labor

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