Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/222769
Authors: 
Rizky, Mayang
Suryadarma, Daniel
Suryahadi, Asep
Year of Publication: 
2019
Series/Report no.: 
ADBI Working Paper Series No. 1002
Abstract: 
This paper investigates the long-term effect of child poverty on labor market outcomes using a 14-year span of data from the Indonesian Family Life Survey. Our instrumental variables estimation shows that a child who lived in a poor family when aged between eight and 17 years old suffers from an 87% earnings penalty relative to a child who did not grow up in a poor family. The direct effect remains large after we account for a large set of mediators. Depending on the set of mediators that we use, we estimate an earnings penalty of between 85% and 90%. Similarly, we do not find any evidence that receiving various government transfer programs mediates the effect of growing up poor on earnings as adults.
Subjects: 
child poverty
Indonesia
instrumental variable
labor market outcomes
JEL: 
J13
I32
J31
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/3.0/igo/
Document Type: 
Working Paper

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