Agricultural Income Shocks and Daily Work Hours of Child Labor in Iran

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Shakerdargah, Ali | 2018

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 51008 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Keshavarz Haddad, Gholamreza; Fatemi Ardestani, Farshad
Abstract:
Empirical finding and evidence asserts that families, in response to income shock, allegedly use their children as income sources and have them to participate in the labor market. By making use of Propensity Score Matching and Heckman Two Steps models and exogenous agricultural income shocks, we examine the hypothesis for the families in the rural areas of Iran. We use the Households' Income and Expenditures Survey of Iran for two consequent years of 1393 (2014) and 1394 (2015). The working sample is restricted to households with children aged between 10-17 years old. Our findings show that the outcome of interest, daily work hours, is not significantly affected by the exogenous shocks of drought and rainfall reduction which is the source of variation for household's agricultural income. The result is robust across the estimation methods. Therefore, the well-known hypothesis that child work is not compelled by household's poverty is reconfirmed
Keywords:
Poverty ; Drought ; Labor Market ; Exogenous Monetary Policy ; Child Labor ; Income Shock

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