By Peter F. Orazem, Guilherme Sedlacek, Zafiris Tzannatos (eds.)
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Additional info for Child Labor and Education in Latin America: An Economic Perspective
2 Average Enrollment Rates in 18 Latin American Countries, by Household Income Level and Age, 1999 households. In addition, those poorest children begin to drop out of school in large numbers after age 11. For children aged 14 to 16, the difference in enrollment rates between rich and poor grows from 20 to 34 percentage points. Consequently, the small differences in enrollment rates across income groups for 8- to 11-year-olds masks large differences in past and future acquisitions of human capital between income groups.
This suggests that enrollment rates may mislead researchers about the extent to which the poor and wealthy invest in the human capital of their children. 44. Worldwide, this is roughly half the correlation between the two factors, which indicates that Latin American countries are positioned in the flat region of the tradeoff between income and child labor described in chapter 1. It also is comparable to the correlation between child labor and school enrollment in Latin America. Consequently, policies to combat child labor in Latin America may not be very effective if they rely on raising income or school enrollment alone.
Information on some countries is spotty, especially for 1950 and 1960. In addition, countries change over time through splits and mergers. To correct for possible random measurement error, we use the averaged data across countries within a region. Random measurement error should be less important in the averaged data as compared with the individual country estimates. 3. 1, as only those for whom necessary information was available on per capita incomes, agricultural share, and adult literacy are included in the regression sample.