Child labor is a social problem with economic consequences for the growth and development of countries in the short and long term, affecting children's physical and mental development because it interferes with their future wages. This article aims to assess how negative income shocks and economic assets are associated with child labor in the Dominican Republic. This issue is particularly important in the rural area, which is more prone to exogenous shocks and has fewer tools to mitigate them. The micro data from the Encuesta Nacional de Hogares de PropÃ³sitos Multiples (ENHOGAR) are used for 2010. The empirical strategy was to use a bivariate probit for considering that the decision to work and study are interdependent. The results show that the assets positively affect the childâ€™s decision to study. On the other hand, negative household income shocks increase choice of working. Finally, the article brings important results for the formulation of public policies aimed to effectively prevent and eradicate child labor in rural areas.
Keywords: Child labor; bivariate probit; Dominican Republic