Do incidence and duration of child labour matter on schooling in Indonesia?

Abstract

This study attempts to investigate the effect of incidence and duration of child labour on schooling using the 2016 Indonesia’s National Labour Force Survey (SAKERNAS). The study uses instrumental variable (IV) technique where access to clean water, good sanitation and access to electricity serve as instruments. The finding suggests that the incidence of child labour is negatively and significantly correlated with enrolment, while there is no effect of duration on schooling. In addition, schooling is significantly influenced by sex, some income and household characteristics and area.