Trade Liberalisation and Child Health: The Role of Maternal Labour Market Engagement in Indonesia

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.