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    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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    Citable URI
    http://hdl.handle.net/11540/11228
    Metadata
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    adbi-wp1002.pdf (510.7Kb)
    Author
    Rizky, Mayang
    Suryadarma, Daniel
    Suryahadi, Asep
    Theme
    Poverty
    Economics
     
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise