Working Papers, Department of Economics, Lund University
Demand for Low-Skilled Labor and Parental Investment in Children's Education: Evidence from Mexico
Abstract: Previous research has shown that school enrollment in
developing countries responds to the changes in demand for low-skilled and
high-skilled labor in the market. Using data from Mexico, I show that the
negative effects of increases in relative demand for low-skilled labor are
not limited to lower rates of school enrollment. Parents respond to the
increases in labor market opportunities for low-skilled labor in the
manufacturing sector by spending less time helping children with their
studies and spending less on children's education while they are enrolled
at school. This suggests that households respond along the intensive margin
as well as on the extensive margin.
Keywords: Low-skilled labor; Parental investment; Children’s education; Human capital; (follow links to similar papers)
JEL-Codes: I21; I25; J23; J24; O54; (follow links to similar papers)
31 pages, February 17, 2014
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