The effect of child labour and low education on adult's labour market experience. The case of Guatemala

Abstract

Abstract The aim of this paper is to analyze the causal effect of a low investment in education and the early entry into the labour market on labour market experience during adulthood. Following a quasi-experimental approach we establish the conditions of an experimental study applying a matching method that assures for the comparability between control and treatment groups. We identify different types of treatment depending on age at first entry into the labour market and on the level of education achieved. Then we estimate the effect of the treatment on adult's employment status and labour earnings. We focus on males and draw our data from the Guatemala Living Standard Measurement Survey (ENCOVI, 2000). We find that accumulated education assures a higher level of earnings in adulthood. Males that performed child work obtain a lower remuneration in the labour market, but have a higher probability of finding a job in adulthood. Experience matters among those who performed child labour since work experience has a positive effect on earnings, especially for older cohorts. JEL Classification: C21, J13, J24, O15, O5

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