Quality of School Service Delivery, Human Capital, and Child Labor: Empirical Evidence from Indonesia

Document Type : Research Paper

Authors

Faculty of Economics and Business, Syiah Kuala University, Banda Aceh (23111), Indonesia

Abstract

The contribution of this research is analyzing the effect of the quality of primary and secondary school service delivery on child labor practices, taking Indonesia as a case study. It is a non-trivial issue for a country like Indonesia, which achieved significant economic progress, but still faced the topic of child labor. The research used data of approximately 55,000 children sampled in the 2018 Indonesian Labor Force Survey (Sakernas), and primary and secondary school accreditation data of Indonesia. Regarding a probit regression model, this paper found that better quality of school service delivery reduces the chance of child labor. Robust to alternate specifications, the findings of this study confirm the hypothesis that quality of school service delivery influences the decision of Indonesian households to send their children to work. It is also found that the education level of the household head decreases the chance of child labor. The implication of this result is, improvement in the quality of school service delivery can serve as an important tool to eliminate child labor. For policy, the government should direct more technical support, and resources to increase the quality of school service delivery, especially in rural and disadvantaged areas. In addition to fulfilling  the UN Sustainable Development Goals (SDGs) target 8.7 on eliminating child labor, this policy is aligned with achieving SDGs target number 10; reducing inequality within a country.

Keywords

Main Subjects

References

Abdullahi, I. I., & Noor, Z. M. (2017). The Linkage between Poverty and Child Labor Prevalence: Evidence from 55 Developing Countries. Political Economy: Institutions in a Global Economy, 1, 190-213.
Afriyie, L. T., Saeed, B. I., & Alhassan, A. (2019). Determinants of Child Labor Practices in Ghana. Journal of Public Health, 27(2), 211-217.
Alcaraz, C., Chiquiar, D., & Salcedo, A. (2012). Remittances, Schooling, and Child Labor in Mexico. Journal of Development Economics, 97(1), 156-165.
Amriani, A., Purba, S., & Darwin, D. (2018). Relevance of Accreditation Rating With Achievement of School Performance at State Elementary School in Subulussalam Aceh Province. 3rd Annual International Seminar on Transformative Education and Educational Leadership (AISTEEL), 18, 861-866.
Arabsheibani, G. R., & Abang, A., Binti, D. H. (2016). Child Labor in Indonesia: Supply-Side Determinants. Economics and Finance in Indonesia, 62(3), 162-179.
Berthoud, R., & Bryan, M. (2011). Income, Deprivation and Poverty: A Longitudinal Analysis. Journal of Social Policy, 40(1), 135-156.
Bhuiya, M. M. M., Khanam, R., Rahman, M. M., & Nghiem, H. S. (2019). Microcredit Participation and Child Schooling in Rural Bangladesh: Evidence from a Cross-Sectional Survey. Economic Analysis and Policy, 64, 293-301.
BPS. (2019). Prosedur Sampling Sakernas Agustus. Retrieved from https://rembangkab.bps.go.id/news/2019/09/05/249/pengolahan-sakernas-agustus-2019.html (In Indonesian).
Carter, B., Roberts, T., Hernandez, K., Watson, C., Devereux, S., Nan-guer, B., & Abdoulaye, Y. (2017). Prevalence and Impacts of Child Labor in Agriculture. Brighton, UK: Institute of Development Studies.
Central Intelligence Agency. (2020). Indonesia. Retrieved from https://www.cia.gov/
Chakraborty, K., & Chakraborty, B. (2018). Low Level Equilibrium Trap, Unemployment, Efficiency of Education System, Child Labor and Human Capital Formation. Journal of Economics, 125(1), 69-95.
Chiwaula, L. S. (2010). Household Poverty and Child Labor Decisions in Malawi. Child Labor and the Transition between School and Work (Research in Labor Economics), 31, iii-iii.
Chong, A., & Yanez-Pagans, M. (2019). Not so Fast! Cash Transfers Can Increase Child Labor: Evidence for Bolivia. Economics Letters, 179, 57-61.
Cruz, M., & Ahmed, S. A. (2018). On the Impact of Demographic Change on Economic Growth and Poverty. World Development, 105, 95-106.
Cummings, P. M. (2016). Child Labor and Household Composition: Determinants of Child Labor in Mexico. Asian Journal of Latin American Studies, 29(3), 29–54.
Dauda, R. S. (2017). Poverty and Economic Growth in Nigeria: Issues and Policies. Journal of Poverty, 21(1), 61-79.
Dawood, T. C., Pratama, H., Masbar, R., & Effendi, R. (2019). Does Financial Inclusion Alleviate Household Poverty? Empirical Evidence from Indonesia. Economics & Sociology, 12(2), 235-252.
Dennis, M. J. (1999). The ILO Convention on the Worst Forms of Child Labor. American Journal of International Law, 93(4), 943-948.
Dilas, D. B. (2019). Education in Indonesia. Retrieved from https://wenr.wes.org/2019/03/education-in-indonesia-2
Eaton, J. S. (2006). An Overview of US Accreditation. Washington, DC: Council for Higher Education Accreditation.
Ersado, L. (2005). Child Labor and Schooling Decisions in Urban and Rural Areas: Comparative Evidence from Nepal, Peru, and Zimbabwe. World Development, 33(3), 455-480.
Fafchamps, M., & Wahba, J. (2006). Child Labor, Urban Proximity, and Household Composition. Journal of Development Economics, 79(2), 374-397.
Gubwe, V., Gubwe, P., & Mago, S. (2015). Child-headed Households and Educational Problems in Urban Zimbabwe: The Case of Dikwindi Primary School in Masvingo Urban. Journal of Sociology and Social Anthropology, 6(2), 293-301.
Hanushek, E. A., Lavy, V., & Hitomi, K. (2008). Do Students Care about School Quality? Determinants of Dropout Behavior in Developing Countries. Journal of Human Capital, 2(1), 69-105.
Haryati, S. (2014). An Evaluative Review of School Accreditation Implementation Program in Indonesian Contexts. International Education Studies, 7(5), 138-146.
Hasan, Z. (2021). The Effect of Economic Growth and Human Development Index on Poverty in Indonesia. Journal of Economics and Sustainability (JES), 3(1), 12-12.
Hedges, S., Sear, R., Todd, J., Urassa, M., & Lawson, D. W. (2019). Earning their Keep? Fostering, Children’s Education, and Work in North-Western Tanzania. Demographic Research, 41, 263-292.
Hidayatina, A., & Garces-Ozanne, A. (2019). Can Cash Transfers Mitigate Child Labor? Evidence from Indonesia’s Cash Transfer Program for Poor Students in Java. World Development Perspectives, 15, 1-14.
International Labor Organization (ILO). (2020). What is Child Labor. Retrieved from https://www.ilo.org/ipec/facts/lang--en/index.htm
---------- (2019). Ending Child Labor by 2025: A Review of Policies and Program. Retrieved from https://library.oapen.org/bitstream/handle/20.500.12657/37968/9789004399013_webready_content_text.pdf#page=154
---------- (2017). Global Estimates of Child Labor: Results and Trends, 2012-2016. Retrieved from https://doi.org/10.1016/j.soilbio.2011.02.006
---------- (1999). C182 - Worst Forms of Child Labor Convention, Retrieved from https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C182
Janssens, C., Van den Broeck, G., Maertens, M., & Lambrecht, I. (2019). What if Mothers are Entrepreneurs? Non-farm Businesses and Child Schooling in Rural Ghana. Journal of Rural Studies, 66, 95-103.
Kambhampati, U. S., & Rajan, R. (2006). Economic Growth: A Panacea for Child Labor? World Development, 34(3), 426-445.
Kumar, G. (2013). Child Labor: Determinants, Dimensions and Policies in India. Economic Affairs, 58(4), 417-429.
Lima, L. R., Mesquita, S., & Wanamaker, M. (2015). Child Labor and the Wealth Paradox: The Role of Altruistic Parents. Economics Letters, 130, 80-82.
Lu, C. H. (2020). Child Labor and Compulsory Education: The Effects of Government Education Policy on Economic Growth and Welfare. Economic Theory, 69(3), 637-666.
Maba, W. (2017). The Implementation of Education National Standard in the Instrument of School Accreditation of Bali Province Education Authority. International Research Journal of Engineering, IT and Scientific Research, 3(4), 1-7.
Nelson, G. L. M., & Quiton, J. D. (2018). Child Labor and Its Effects on Schooling, Health and Recreation of Filipino Children. Journal of Population and Social Studies, 26, 68-82.
Nengroo, A. H., & Bhat, G. M. (2017). Why Child Labor? Evidences from Homebased Carpet Weaving Industry of Kashmir. Children and Youth Services Review, 79, 50–56.
Novella, R. (2018). Orphan Hood, Household Relationships, School Attendance and Child Labor in Zimbabwe. Journal of International Development, 30(5), 725-744.
Pijano, C. V. (2010). Quality Assurance and Accreditation: The Philippine Experience. Japan-ASEAN Information Package Seminar, Retrieved from
http://www.niad.ac.jp/n_kokusai/intl_engagement/seminar/12_no17_paascu_slides.pdf
Pop-Eleches, C., & Urquiola, M. (2013). Going to a Better School: Effects and Behavioral Responses. American Economic Review, 103(4), 1289-1324.
Priyambada, A., Suryahadi, A., & Sumarto, S. (2005). What Happened to Child Labor in Indonesia during the Economic Crisis? The Trade-off between School and Work. SMERU Research Institute, Working Paper, 331.1/DDC 21, 3-34.
Purnastuti, L., Salim, R., & Joarder, M. A. M. (2015). The Returns to Education in Indonesia: Post Reform Estimates. The Journal of Developing Areas, 49(3), 183-204.
Quattri, M., & Watkins, K. (2019). Child labor and Education–A Survey of Slum Settlements in Dhaka (Bangladesh). World Development Perspectives, 13, 50-66.
Serra, R. (2009). Child Fostering in Africa: When Labor and Schooling Motives May Coexist. Journal of Development Economics, 88(1), 157-170.
Seth, S., & Villar, A. (2014). The Measurement of Human Development and Poverty. UPO, Working Papers, 14.10, 1-20.
Shafiq, M. N. (2007). Household Schooling and Child Labor Decisions in Rural Bangladesh. Journal of Asian Economics, 18(6), 946-966.
Sinha, A., Lombe, M., Saltzman, L. Y., Whetten, K., Whetten, R., & Team, P. O. (2016). Exploring Factors Associated with Educational Outcomes for Orphan and Abandoned Children in India. Global Social Welfare, 3(1), 23-32.
Suka Society. (2010). Child labor in Malaysia? Retrieved from https://doi.org/http://www.sukasociety.org/child-labour-in-malaysia/
Susanli, Z. B., Inanc-Tuncer, O., & Kologlugil, S. (2016). Child Domestic Labor and Mothers’ Employment in Turkey. Economic Research, 29(1), 967-979.
Tang, C., Zhao, L., & Zhao, Z. (2020). Does free Education Help Combat Child Labor? The Effect of a Free Compulsory Education Reform in Rural China. Journal of Population Economics, 33(2), 601-631.
---------- (2018). Child Labor in China. China Economic Review, 51, 149-166.
Todaro, M., & Smith, S. (2012). Economic Development. Retrieved from https://doi.org/10.1177/089124240001400105
Togunde, D., & Richardson, S. (2006). Household Size and Composition as Correlates of Child Labor in Urban Nigeria. Africa Development, 31(1), 50-65.
Tran, T. D., Luchters, S., & Fisher, J. (2017). Early Childhood Development: Impact of National Human Development, Family Poverty, Parenting Practices and Access to Early Childhood Education. Child: Care, Health and Development, 43(3), 415-426.
United Nations. (2019). Indonesia Commits To Eliminate All Forms Of Child Labor by 2022. Retrieved from https://news.un.org/en/gallery/1128367
UNODC. (2020). Sustainable Development Goals. Retrieved from https://www.unodc.org/
US Department of Labor. (2018). Child Labor and Forced Labor Reports: Indonesia. Retrieved from https://www.dol.gov/agencies/ilab/resources/reports/child-labor/indonesia
Villadiego, L. (2018). Slow Progress in the Fight Against Child Labor in Indonesia. Retrieved from https://www.equaltimes.org/slow-progress-in-the-fight-against
Webbink, E., Smits, J., & De Jong, E. (2015). Child Labor in Africa and Asia: Household and Context Determinants of Hours Worked in Paid Labor by Young Children in 16 Low-Income Countries. The European Journal of Development Research, 27(1), 84-98.
Werner, L. K., Jabbarian, J., Kagoné, M., McMahon, S., Lemp, J., Souares, A., De Neve, J.-W. (2019). "Because at school, you can become somebody"–The Perceived Health and Economic Returns on Secondary Schooling in Rural Burkina Faso. PloS One, 14(12), 1-20.
World Bank. (2018). Indonesian Economic Quarterly: Learning More, Growing Faster. Retrieved from https://openknowledge.worldbank.org/bitstream/handle/10986/29921/126891-WP-PUBLIC-on-6-5-18.pdf?sequence=1&isAllowed=y
Yao, J. (2017). Who is Jobless? A Comparison of Joblessness in Rural and Urban Areas in China. Asian Social Work and Policy Review, 11(1), 40-52.
Zabaleta, M. B. (2011). The Impact of Child Labor on Schooling Outcomes in Nicaragua. Economics of Education Review, 30(6), 1527-1539.
Iranian Economic Review
Volume 27, Issue 4
December 2023
Pages 1199-1219

Files

Share

How to cite

Statistics