DOES OUTSOURCING HOUSEHOLD PRODUCTION HARM FUTURE HUMAN CAPITAL? EVIDENCE FROM MALAYSIA

In some Asian countries, households import young women from poorer countries to work as live-in caregivers and maids. These caregivers are typically less educated than the child's mother, so academic performance may suffer. The effects of ever having a foreign maid, a private tutor or a working mother are examined for Malaysian teenagers. Contrary to expectations, those ever having a foreign maid perform better in school examinations, recent private tutoring has positive impacts but earlier tutoring does not, and there is little effect of maternal employment. These results suggest no adverse effects on human capital from outsourcing household production.