Sim, Armand A., Daniel Suryadarma, and Asep Suryahadi (2012). "The Consequences of Child Market Work on the Growth of Human Capital" Paper presented at the 9th annual conference of the HDCA, 5-7 September 2012, Jakarta, Indonesia.

Theoretical propositions suggest that child labor is inefficient if it adversely affects future earning ability. Given the importance of human capital on lifetime earnings, this paper measures the effect of child market work on the long-term growth of human capital, focusing on the output of the human capital production: mathematics skills, cognitive skills, and pulmonary function. Using a rich household longitudinal dataset from Indonesia, our instrumental variable estimation shows strong negative effects of child labor on the long-term growth of mathematics skills and pulmonary function. We also find heterogeneities in these effects by gender, location of residence, and type of work.