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e - ISSN 2289 - 2559

Journal of Emerging Economies and Islamic Research

 
 

Volume 5, Number 3, Year 2017
 

REGULAR ARTICLE

ABSTRACT

This study investigates the impact of government expenditure, household expenditure and adult unemployment on child labour in Indonesia between 1985 and 2014. The data from the World Bank Indicators tested using Johansen & Juselius Cointegration (J&J), Vector Error Correction Model (VECM), Granger Causality, Generalized Variance Decomposition (GVDCs) and Generalized Impulse Response Functions (GIRFs) show thatthere are long run and short run relationships between the variables. Hence,the need to improve on policiesrelating to encouraging children to attend school without affecting their family income becomes critical. In addition household consumption pattern and spending decisions may require adjustment with the support of the authorities so as to assist the common man in prioritising their basic development needs, especially education.

 

KEYWORDS

Child labour, Education, Household income, Unemployment

 

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