UNIVERSITY OF ECONOMICS ERASMUS UNVERSITY ROTTERDAM HO CHI MINH CITY INSTITUTE OF SOCIAL STUDIES VIETNAM THE NETHERLANDS VIETNAM – THE NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS THE DIRECT AND INDIRECT IMPACT OF CHILD LABOR ON EDUCATIONAL ACHIEVEMENT: EVIDENCE FROM VIETNAM BY NGUYEN TAN PHUC MASTER OF ARTS IN DEVELOPMENT ECONOMICS HO CHI MINH CITY, November 2017 TIEU LUAN MOI download : skknchat@gmail.com UNIVERSITY OF ECONOMICS INSTITUTE OF SOCIAL STUDIES HO CHI MINH CITY THE HAGUE VIETNAM THE NETHERLANDS VIETNAM - NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS THE DIRECT AND INDIRECT IMPACT OF CHILD LABOR ON EDUCATIONAL ACHIEVEMENT: EVIDENCE FROM VIETNAM A thesis submitted in partial fulfilment of the requirements for the degree of MASTER OF ARTS IN DEVELOPMENT ECONOMICS By NGUYEN TAN PHUC Academic Supervisor: Assoc. Nguyen Huu Dung Ph. HO CHI MINH CITY, November 2017 TIEU LUAN MOI download : skknchat@gmail.com Contents CHAPTER I: INTRODUCTION. Research objectives and methods.
Structure of thesis. 6 CHAPTER II: LITERATURE REVIEW. Review of empirical studies. 8 CHAPTER III: RESEARCH METHODOLOGY.
The data: Young Lives Round 4 – 2013. 16 CHAPTER IV: RESEARCH RESULTS. Overview of child labor and education in Vietnam. Summarize the data.
The estimation results for Whole sample. Results of two – stage least squares regression. 38 TIEU LUAN MOI download : skknchat@gmail.com 2 Abstract This study explores the direct and indirect impact of child work on educational achievement of children at the age from 11 to 20 across rural and urban areas in Vietnam, using the data of Young Lives Round 4 complemented in 2013. Given the characteristics of individual, household and schooling which are controlled in estimation, the results indicate that there is negative relationship between hours worked and math scores of children, but the impact in the rural areas is different from that in the urban.
In urban, exhaustion while working or doing other activities besides learning is responsible for weak performance in schools. Meanwhile, school dropouts and delays because of working is the main reason of low educational outcomes of children in rural. Further, schooling attributes contribute to the increase in math scores of children, especially those in rural, raising the necessities of improving qualities of education in those regions. This study also uses a set of factors including income earned from crops, household shocks, and community – level rice price as instruments of hours worked variable.
But after Hausman examination, the Ordinal Least Square (OLS) results are preferred due to weak instruments. JEL Classification: I21, J13, J22, O15 Key words: child work, educational achievement, Vietnam TIEU LUAN MOI download : skknchat@gmail.com 3 CHAPTER I: INTRODUCTION 1. Problem statement Child labor is described as the engagement of children in various activities (paid or unpaid) that keep them from their childhood. According to Global Child Labor Trends, there are approximately 10.6 percent of children at the age of 5 – 17 in the world participate in workforce.
Following the first National Child Labor Survey in 2014, this number in Vietnam is about 9. Most of them living in the countryside, being involve in agricultural activities or their family businesses over 42 hours per week.2 percent of them were not going to school. Many argue that working of children would bring many disadvantages for the development of them following reasons. One disadvantage concerns the increase in the risks of issues which could harm seriously physical and mental health of children when they participate in workforce.
It is obviously to see that jobs employing children as workforce normally are described as unskilled types of work, together with poor quality in working conditions. The occupational injuries potentially appear from operations with dangerous equipment, heavy loads or poison exposure. Moreover, throughout history of the world, child labor often relates to illegal activities such as slavery, drug trade, child prostitution and human trafficking. These kinds of abuses cause both physically and mentally traumas for the whole life of children involved.
According to UNICEF, Sub – Saharan Africa has the highest percentage of young workers around the world. At the group of 5 – 14 ages, child labor in this country accounts for 28 percent, while countries such as Middle East and North Africa and East Asia and the Pacific are about 10 percent. Following International Labor Organization, using the sample of 26 countries, there is a quarter of children who suffer injuries while working. In United States, industries using children as employment force accounts for the higher injury rates than the average level every year.
In term of Vietnam, according to Hanoi school of Public Health report, about 23000 children were injured by sharp objectives, and half of these children got damaged when they were working. Further, more than 60 percent of injuries caused by machines in young workers, mainly at the age of older 14. There was investigation in 2001 conducted by the Ho Chi Minh City Department of Labor, Invalids, and Social Affairs, found that child labor problem still TIEU LUAN MOI download : skknchat@gmail.com 4 remains at least 7 of 24 districts throughout Vietnam, especially in rural areas. More than 90 percent of companies that employ children as workforce without legal license, and children have to work under hazardous conditions, particularly in environments of gold mines, timber operations or cargo transport.
In addition, the survey implemented by Statistical Information and Monitoring Programme which disentangle the state of child labor in four countries Cambodia, Laos, Mongolia, and Vietnam reports that 43 percent of children aged 5 – 14 and 51 percent of children aged 15 – 17 are suffering dangerous conditions at their work. In 2015, The Guardian documented that about 3000 children in Vietnam were trafficked to the UK for working and debt paying purpose, with regard to illegal businesses such as brothels or cannabis farms. The second drawback of child employment is to prevent children from their childhood that they should have. The fact is, children will miss the opportunity to attend school and to acquire academic education.
They also have no time playing outside with those at the same age. In turn these factors lead to the statement that children are limited for developing fully their understandings, awareness and knowledge. Education plays a vital role for the long – term growth of people, especially children. It is believed that, living in a competitive world, candidates with a high education and knowledge will have more choices in labor market than others.
The reason for this could be explained that children acquire from basic to advanced level of accumulated understandings of a field through learning. From that, they will be able to have a general perspective for any situations, circumstances, and abilities. Knowledge also helps them avoid faults and build on achievements from the past. Moreover, spending more time in school improves their soft skills as well, including responsibility, time management, disciplines, organizational and social skills.
These strengths contribute significantly to their success and quality of life in future. In term of country level, education is described as a main tool for sustainability, economic development and social welfare. One of the prior goals of both developed and developing nations in the world is to improve the total capacity and quality of their human resources from their own country or from others. Every year, they invest large amount of money in human capital as well as enhance the awareness of residents about benefits of acquiring knowledge.
Educational achievement is considered as the instructional goals or learning objectives of education. It is described as outcomes that an individual obtains from learning activities in TIEU LUAN MOI download : skknchat@gmail.com 5 academic institutions, such as in schools, colleges, universities, etc. Students reveal educational performance by their ability of knowledge, understanding and skills acquisitions in a particular field (numeracy, literacy, science, art, computing, etc.) through distinct measurements like scores or grades on tests, level of academic degrees, and number of educational certificates. Educational achievement is normally employed to measure ability of one person.
It shows the outcome that an individual obtains from his or her engagement of education, focusing on what he or she could actually do, rather than the level of participation in education. Educational achievement also helps to setting standardized assessments for distinguishing capacities of students in schools, contributing to household decisions whether a child should continue education or not, as well as enhancing the motivation of education engagement of children. Research objectives and methods This study mainly aims to investigate the direct and indirect effect of child labor on educational achievement which measured by the cognitive achievement such as mathematics performance for children in Vietnam. The exploration from this research could solve some following problems.
At first, educational achievement (or educational performance) is seen as one of important factor which highly influence long – term development as well as enhance the quality of life of an individual, household, society or even a country. Therefore, it is necessary and reasonable for exploring the effect of a historical and prevalent problem like employment of children at work, on their educational achievement. Second, previous studies primarily concentrate on school attendance or school enrollment, and use this measurement as the indicators of learning achievement. However, this approach is unable to estimate truly the harmful which is caused by child labor.
For example, working could harm potential achievement or gains acquired from education even attaining school or not. According to Christopher (2000), it could over – estimate the effect of working at the early age in case children enroll in poor education or school, but they can improve their knowledge through their job. Besides, it also would under – estimate the child labor due to the scenario in which student in spite of going to school but having no time learning or completing homework after working. Consequently, it is obviously necessary to employ other indicators for educational achievement than simply using school enrollment rates.
Unlike previous studies, this study employs new measurement of learning achievement, the mathematics performance of children. Third, by employing rich set of TIEU LUAN MOI download : skknchat@gmail.com 6 control variable, including individual characteristics, household characteristics, and schooling characteristics, the results suggest which factor of an individual could potentially affect educational achievement, together with child work. For example, it is considered that older children are likely to outperform younger children in term of both working and learning achievement due to their higher physical health. As a result, the intensity of work will not affect performance of older children as much in comparison to younger ones.
Finally, it will show the general picture as well as support the factual evidence about consequences of using children as labor force and its effect (both direct and indirect) on human growth and learning, of one typical developing country like Vietnam. These results will help policy makers in taking child labor into consideration, then building appropriate and effective policies, also contribute to academic field of employment of children at work as well as learning achievement for later related studies. Following this research objective, the chosen empirical method in this study is based on the model set by Heady (2000), using the Young Lives Round 4 data in Vietnam which covers 839 children at the age from 11 to 20. In which, the total effect is measured when regressing educational achievement on child labor while excluding schooling attributes out of estimated equations, given the control of individual characteristics and household characteristics of children.
The direct effect, however, is exposed in the same analysis but keep the schooling attributes constant. The estimations in this study are Ordinal Least Square (OLS) and Two – stage Least Square with a set of instrumental variables for robustness check. In my expectation, weak performance in education is driven by the incidence of child work, and this negative impact is different across urban and rural areas.