The impacts of health shocks on child labor: evidence in vietnam

Abstract

Base on household decisions relating to child labor, this paper employs the Young Lives Dataset and Heckman’s selection model to explore the impacts of health shocks on child labor in Vietnam during the period of 2006-2009. This study also considers whether the buffering effect of asset holdings and access to credit are existence to cushion the impact of health shocks on child labor. The main findings indicate health shocks only impact on the decision send the child to work, meaning increase the probability of the child labor participation. Asset holdings is the significant mechanism to households coping with health shocks. Also, the buffering effect of assets on the child labor participation is found. However, the access to credit is not significant in both functions. Additionally, poverty still remains as the crucial factor to determine child labor.