Economics of Transition and Institutional Change· 2026Q2
Trade Liberalisation and Child Health: The Role of Maternal Labour Market Engagement in Indonesia
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- 2026year
Short summary
Trade liberalization in Indonesia significantly improved child health, with gains largely driven by increased maternal employment, particularly in the informal sector, leading to better child nutrition.
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Key points
- Trade liberalization in Indonesia correlated with significant child health improvements.
- Increased maternal labor force participation was a key channel for these health gains.
- Informal sector employment and improved child nutrition were identified as primary drivers.
- Domestic policies supporting childcare and employment for less-skilled women can enhance these benefits.
AI-generated from the title and abstract; the full text is not read.
Abstract
ABSTRACT This article studies whether trade liberalisation improves child health and the role of maternal labour choices in shaping these outcomes. Using evidence from Indonesia, we find significant improvements in child health following tariff reductions. However, once trade‐induced changes in mothers' labour force participation are accounted for, the direct effects of tariff diminish, indicating that the gains partially arise through increased maternal employment. Informal sector employment and more nutritious diets for children are seen to be driving these effects. Domestic policies expanding affordable childcare access and employment opportunities for less‐skilled women are the key to translating trade liberalisation into better child health outcomes.
The authors' abstract, as published at the source. Economics of Transition and Institutional Change, 2026 · DOI ↗
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Field: General Economics, Econometrics and Finance
General Economics, Econometrics and FinanceEconomics, Econometrics and Finance