Child Labour in Indonesian Small IndustriesReport as inadecuate

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* Corresponding author 1 International Economic Policy

Abstract : We analyse the geographic incidence of child labour in small manufacturing firms in Indonesia at the village level. We show that a number of counter-intuitive results in a conditional probit model - e.g. child labour is unaffected by credit access and school proximity - are the result of an interplay between supply and demand side determinants. Credit access and school proximity reduce child labour supply, but simultaneously constitute positive location factors for firms thereby increasing the demand for child labourers. To effectively reduce child labour, growth oriented policies should be complemented by policies specifically geared towards increasing school attendance.

keyword : Social Sciences & Humanities

Author: Krisztina Kis-Katos - Guenther G Schulze -



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