Effect of Growing Up Poor on Labor Market Outcomes: Evidence from Indonesia
Rizky, Mayang; Suryadarma, Daniel; Suryahadi, Asep | September 2019
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.
Citation
Rizky, Mayang; Suryadarma, Daniel; Suryahadi, Asep. 2019. Effect of Growing Up Poor on Labor Market Outcomes: Evidence from Indonesia. © Asian Development Bank Institute. http://hdl.handle.net/11540/11228.Keywords
Poverty Analysis
Participatory Poverty Assessment
Poverty Reduction Strategy
Extreme Poverty
Economic development
Growth And Poverty
Macroeconomic
Macroeconomic Analysis
Macroeconomic Framework
Macroeconomic Models
Macroeconomic Performance
Macroeconomic Planning
Macroeconomic Policies
Macroeconomic Reform
Macroeconomic Stabilization
Income Distribution
Demographic Indicators
Social Justice
Price stabilization
Food prices
Price policy
Development Indicators
Environmental Indicators
Economic Indicators
Educational Indicators
Demographic Indicators
Health Indicators
Disadvantaged Groups
Low Income Groups
Socially Disadvantaged Children
Social change
Social accounting
Inequality of income
Economic growth
Quality of Life
Open price system
Price fixing
Price regulation
Consumer price indexes
Poor
Economic forecasting
Economic Zones
Health expectancy
Social groups
Political participation
Distribution of income
Developing countries
Rural community development
Mass society
Social change
Social policy
Social stability
Population
Sustainable development
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