Effects of economic shocks on children's employment and schooling in Brazil

Suzanne Duryea; David Lam; Deborah Levison

doi:10.1016/j.jdeveco.2006.11.004

Effects of economic shocks on children's employment and schooling in Brazil

Suzanne Duryea
, David Lam
, Deborah Levison

Research output: Contribution to journal › Article › peer-review

161 Scopus citations

Abstract

This paper uses longitudinal employment survey data to analyze the impact of household economic shocks on the schooling and employment transitions of young people in metropolitan Brazil. The paper uses data on over 100,000 children ages 10-16 from Brazil's Monthly Employment Survey (PME) from 1982 to 1999. Taking advantage of the rotating panels in the PME, we compare households in which the male household head becomes unemployed during a four-month period with households in which the head is continuously employed. Probit regressions indicate that an unemployment shock significantly increases the probability that a child enters the labor force, drops out of school, and fails to advance in school. The effects can be large, implying increases of as much as 50% in the probability of entering employment for 16-year-old girls. In contrast, shocks occurring after the school year do not have significant effects, suggesting that these results are not due to unobserved characteristics of households that experience unemployment shocks. The results suggest that some households are not able to absorb short-run economic shocks, with negative consequences for children.

Original language	English (US)
Pages (from-to)	188-214
Number of pages	27
Journal	Journal of Development Economics
Volume	84
Issue number	1
DOIs	https://doi.org/10.1016/j.jdeveco.2006.11.004
State	Published - Sep 2007

Bibliographical note

Funding Information:
This research was supported by a grant from the National Institute of Child Health and Human Development of the U.S. National Institutes of Health, Grant Number R01-HD31214. Excellent research assistance was provided by Jasper Hoek. This paper does not necessarily express the views of the Inter-American Development Bank or its Board of Directors.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth
SDG 16 Peace, Justice and Strong Institutions

Keywords

Brazil
Child labor
Schooling
Shocks

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10.1016/j.jdeveco.2006.11.004

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title = "Effects of economic shocks on children's employment and schooling in Brazil",

abstract = "This paper uses longitudinal employment survey data to analyze the impact of household economic shocks on the schooling and employment transitions of young people in metropolitan Brazil. The paper uses data on over 100,000 children ages 10-16 from Brazil's Monthly Employment Survey (PME) from 1982 to 1999. Taking advantage of the rotating panels in the PME, we compare households in which the male household head becomes unemployed during a four-month period with households in which the head is continuously employed. Probit regressions indicate that an unemployment shock significantly increases the probability that a child enters the labor force, drops out of school, and fails to advance in school. The effects can be large, implying increases of as much as 50\% in the probability of entering employment for 16-year-old girls. In contrast, shocks occurring after the school year do not have significant effects, suggesting that these results are not due to unobserved characteristics of households that experience unemployment shocks. The results suggest that some households are not able to absorb short-run economic shocks, with negative consequences for children.",

keywords = "Brazil, Child labor, Schooling, Shocks",

author = "Suzanne Duryea and David Lam and Deborah Levison",

note = "Funding Information: This research was supported by a grant from the National Institute of Child Health and Human Development of the U.S. National Institutes of Health, Grant Number R01-HD31214. Excellent research assistance was provided by Jasper Hoek. This paper does not necessarily express the views of the Inter-American Development Bank or its Board of Directors. ",

year = "2007",

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doi = "10.1016/j.jdeveco.2006.11.004",

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AU - Lam, David

AU - Levison, Deborah

N1 - Funding Information: This research was supported by a grant from the National Institute of Child Health and Human Development of the U.S. National Institutes of Health, Grant Number R01-HD31214. Excellent research assistance was provided by Jasper Hoek. This paper does not necessarily express the views of the Inter-American Development Bank or its Board of Directors.

PY - 2007/9

Y1 - 2007/9

N2 - This paper uses longitudinal employment survey data to analyze the impact of household economic shocks on the schooling and employment transitions of young people in metropolitan Brazil. The paper uses data on over 100,000 children ages 10-16 from Brazil's Monthly Employment Survey (PME) from 1982 to 1999. Taking advantage of the rotating panels in the PME, we compare households in which the male household head becomes unemployed during a four-month period with households in which the head is continuously employed. Probit regressions indicate that an unemployment shock significantly increases the probability that a child enters the labor force, drops out of school, and fails to advance in school. The effects can be large, implying increases of as much as 50% in the probability of entering employment for 16-year-old girls. In contrast, shocks occurring after the school year do not have significant effects, suggesting that these results are not due to unobserved characteristics of households that experience unemployment shocks. The results suggest that some households are not able to absorb short-run economic shocks, with negative consequences for children.

AB - This paper uses longitudinal employment survey data to analyze the impact of household economic shocks on the schooling and employment transitions of young people in metropolitan Brazil. The paper uses data on over 100,000 children ages 10-16 from Brazil's Monthly Employment Survey (PME) from 1982 to 1999. Taking advantage of the rotating panels in the PME, we compare households in which the male household head becomes unemployed during a four-month period with households in which the head is continuously employed. Probit regressions indicate that an unemployment shock significantly increases the probability that a child enters the labor force, drops out of school, and fails to advance in school. The effects can be large, implying increases of as much as 50% in the probability of entering employment for 16-year-old girls. In contrast, shocks occurring after the school year do not have significant effects, suggesting that these results are not due to unobserved characteristics of households that experience unemployment shocks. The results suggest that some households are not able to absorb short-run economic shocks, with negative consequences for children.

KW - Brazil

KW - Child labor

KW - Schooling

KW - Shocks

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Effects of economic shocks on children's employment and schooling in Brazil

Abstract

Bibliographical note

UN SDGs

Keywords

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