The effect of parental labor supply on child schooling: evidence from trade liberalization in India |
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Authors: | Beyza Ural Marchand Ray Rees Raymond Riezman |
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Institution: | 1. Department of Economics, University of Alberta, Edmonton, AB, Canada 2. Department of Economics, University of Munich, Munich, Germany 3. Department of Economics, University of Iowa, Iowa City, USA
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Abstract: | This paper estimates the effect of changes in maternal and paternal labor supply on the schooling rates of children in India using the variation in industry-specific tariffs during a period of trade liberalization. The results show that an increase in maternal labor supplied outside of the household leads to a higher schooling probability for younger children. Specifically, a 1 day per week increase in maternal labor supply is associated with an approximately 5 % points increase in the schooling probability for children between the ages of 7 and 10. However, father’s labor supply has an insignificant effect on child schooling across all specifications. The effect for older children between the ages of 11 and 14, who face a tradeoff between schooling, market work, and domestic work, is also found to be insignificant. |
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