Child Labor and Trade Liberalization in Indonesia

We examine the effects of trade liberalization on child work in Indonesia, identifying geographical differences in the effects of trade policy through district level exposure to reduction in import tariff barriers, from 1993 to 2002. The results suggest that increased exposure to trade liberalization is associated with a decrease in child work among the 10–15 year olds. The effects of tariff reductions are strongest for children from low-skill backgrounds, older siblings, and in rural areas. Favorable income effects for the poor, induced by trade liberalization, are likely to be the dominating effects underlying these results.