The Role of Land Wealth on Child Labour in Vietnam · – 12000 children over 15 years in Vietnam, Peru, Ethiopia and India – Vietnam: 1000 Older Cohort children aged 7-8 years

TheRoleofLandWealthonChildLabourinVietnam

YinLiToh

Ischildlabouramassphenomenon?

LiteratureReview•  BasuandVan(1998)’sluxuryaxiom•  Povertyhypothesis

–  Basu(1999),Ranjan(1999),RosaJ&Rossi(2003)•  Wealthparadox

–  Bhalotra&Heady(2003),Ganglmair(2006),Dumas(2007),Kruger(2007)

–  Landwealth:incomeandsubsJtuJoneffects

•  LabourmarketimperfecJons–  Basu,Bas&DuYa(2010)inverted-Ushapedmodelbetweenlandsize

andchildlabour–  Inabilitytohirelabourers(eg.moralhazard)andareincenJvisedto

hireownchildren

LiteratureReview|Vietnam|Data|Methodology|Results|ConcludingRemarks

ChildlabourinVietnam•  DoiMoieconomicreform(1986)

–  Economicgrowthratesofover6%perannum–  ChildlabourreducJonfrom40%(1993)to17%(1998)(RosaJ&

Tzannatos,2006)•  ILO(2014)esJmates1.75millionworkingchildreninVietnam•  1990s:povertyhypothesis

–  Improvementsinpercapitaexpenditure(Edmonds,2005)–  RicepricesincreaseasaresultoftradeliberalisaJon(Edmonds&

Pavcnik,2004)•  2000s:wealthparadox?

–  1993LandLaw:land-rightsexchangeandinvestment–  70%Vietnamesehouseholdsproducerice(Minot&Golee,2000)–  Increasedinricepricesin1990s–  71%ofworkingchildreninagriculture(ILO,2014)


Data•  YoungLivesSurveypanel

–  12000childrenover15yearsinVietnam,Peru,EthiopiaandIndia–  Vietnam:1000OlderCohortchildrenaged7-8years–  3rounds:2002,2006,2009

•  KeycharacterisJcs:–  LowaYriJonrate(9.6%)–  Non-binarychildlabourmeasure

•  paidacJvity•  domesJctasks(farmingandfamilybusiness)•  householdchores•  caringforhouseholdmembers


0

0.5

1

1.5

2

2.5

3

PaidacJvity

DomesJctasks

Householdchores

Caringforothers

Totalwork

Total

Male

Female

Childlabour(hours/day)bygender


NoWork Work Total

NoSchool 7 278 285

School 722 1921 2643

Total 729 2199 2928

DistribuBonofchildreninworkandinschool


Alltypes DomesBctasks

Obs Mean Obs Mean

Total 1915 2.585 1930 0.840

Landsize(hectares)

≤30%(0.01) 741 2.090 744 0.046

30-70%(1.65) 661 2.445 669 0.541

>70% 513 3.480 517 1.793

Childlabour(hours/day)bypercenBlesoflandsize

Methodology

yit* =α + βX '

it +ν i + ε it yit =yit

* if yit* > 0

0 otherwise

⎧⎨⎪

⎩⎪

•  Tobitmodelrandomeffects

VariablesChildCharacterisJcs Age(years)

MaleHouseholdResources Landowned(hectares)

Log(non-foodexpenditure)/capitaHouseholdStructure Malehouseholdhead

No.ofhouseholdmembersNo.offemales&males0-5,6-17,18-60,60+

Parents’EducaJon Mother&Father:None,Primary,Secondary/higher

CommunityCharacterisJcs RuralSchooltravelJme(mins)Communityfixedeffects


ResultsTobitesJmates Probability Marginaleffects

Land 0.321***(0.069)

0.031***(0.007)

0.221***(0.048)

Land2 -0.003***(0.001)

- -

Log(expenditure) -0.552***(0.084)

-0.054***(0.009)

-0.383***(0.059)

Age 2.422*(1.425)

0.048***(0.005)

0.339***(0.027)

Age2 -0.071(0.052)

- -

Male -0.475***(0.099)

-0.046***(0.010)

-0.330***(0.069)

Obs 1817 1817 1817***p<0.01,**p<0.05,*p<0.1


Probability MarginaleffectsMale Female Male Female

Land 0.047*** 0.037*** 0.288*** 0.343***

Log(expenditure) -0.056*** -0.050*** -0.340*** -0.461***

Age 0.058*** 0.036*** 0.353*** 0.327***

Femalesaged0-5 0.059** 0.050*** 0.362** 0.462***

Malesaged0-5 0.077*** 0.076*** 0.470*** 0.694***

Momeduc:Primary -0.047 -0.043 -0.286 -0.396

Momeduc:Sec/Higher -0.063 -0.056* -0.387 -0.515*

Dadeduc:Primary 0.020 0.057* 0.122 0.520*

Dadeduc:Sec/Higher -0.049 0.057* -0.301 0.524*

Rural 0.091 0.232** 0.552 2.125**

SchooltravelJme -0.005*** -0.004*** -0.032*** -0.037***

CommuniJes YES YES YES YESObs 897 920 897 920***p<0.01,**p<0.05,*p<0.1


•  NumberofcaYle–  AlternaJvemeasureofwealth–  Smallerinvestment(collateral)–  Incomesourceduringnon-remuneraJvecropproducJon–  CaYlerearingrequiressubstanJallabour

RobustnessCheck


TobitesJmates Probability Marginaleffects

Land CaYle Land CaYle Land CaYle

Land 0.321*** - 0.031*** - 0.221*** -

Land2 -0.003*** - - - - -

CaYle - 0.338*** - 0.031*** - 0.227***

CaYle2 - -0.013*** - - - -

Log(expenditure) -0.552*** -0.516*** -0.054*** -0.049*** -0.383*** -0.360***

Age 2.422* 2.771* 0.048*** 0.049*** 0.339*** 0.361***

Age2 -0.071 0.083 - - - -

Male -0.475*** 0.476*** -0.046*** -0.046*** -0.330*** -0.332***

Obs 1817 1817 1817 1817 1817 1817

***p<0.01,**p<0.05,*p<0.1


•  ConsistentwithevidencefromCambodia(Seiichi,Kana&Phoumin,2013)–  Nosignificanteffectoflandwealthonchildlabour

ConcludingRemarks•  Inverted-UshapedrelaJonshipbetweenlandwealthand

childlabourinVietnam–  ImperfecJonsinlabourmarkets(Basu,Bas&DuYa,2010)–  RobustwithalternaJvemeasureofwealth-numberofcaYle

•  DomesJcworkchannelcanexplainchildlabourincidenceinimperfectlabourmarkets–  Genderbiasonprobabilityandmarginaleffectsofchildlabour

•  ContribuJonstoliterature:–  EvidencefromSouthEastAsiaonthewealthparadoxofchildlabour–  Non-binarychildlabourvariablethatincludesdomesJcwork


PolicyConsideraJons•  InvestmentinraisingreturnsofeducaJon

–  MarginalchildlabourproducJvityrelaJvetochildnon-workreturns•  InvestmentinfemaleeducaJon

–  ReducechildlabourofcurrentgeneraJon–  ImprovequalityofnextgeneraJon’schildrenoutcomes

•  Labourstandardstocoverfamilybusinessandfarming(domesJcwork)

•  Channelinreducingpovertyisimportant


LimitaJonsandFutureResearch•  Non-normaldistribuJonandheteroskedasJcerrorsfrom

Tobitmodel–  CensoredleastabsolutedeviaJons(CLAD)model

•  PotenJalendogeneityproblemwithconsumpJonexpenditureashouseholdincomeproxy

•  DataavailabilityonseasonalagriculturalproducJon,riceprices,wages,unemploymentrate

•  Didnotexplorecausaleffectsoflandwealthonschooling


Documents

The Role of Land Wealth on Child Labour in Vietnam · – 12000 children over 15 years in Vietnam, Peru, Ethiopia and India – Vietnam: 1000 Older Cohort children aged 7-8 years