In this study I consider whether child labor and schooling decisions are made
in a rational way, and I explore which factors influence families’ decisions. I utilize
the ‘luxury axiom’ (Basu and Van, 1998), which states that when a family is below
the poverty level, then they will need income from child labor. In such situations, the
children are less likely to attend school. As many households in Thailand are near the
poverty line, sizable changes ‘in and out of’ poverty take place that might increase
the probability of having child labor.
Using data from the Thailand Labor Force Survey (National Statistic Office
Thailand, 2003), I will test the luxury axiom along with other determinants that
might have an influence on the supply of child labor. This study targets children
between the ages of 15-17, which is the upper-secondary school age. The paper is
organized as follows: I will begin with a review of previous literatures. Then I will go
on to describe the theoretical framework and data. Subsequently, I will present the
empirical results, followed by the conclusion.