The Effect of Remittances on Child Labor: Cross-Country Evidence
AbstractThis paper examines the relationship between migrants remittances and the prevalence of child labor by using a large sample of developing countries. In particular, we investigate whether the inflow of remittances helps to offset the effects of financial constraints and income shocks on the prevalence of child labor. From on a sample of 82 developing countries (of which 31 are African) observed in the year 2000 and after taking into account the endogeneity of remittances, migration and financial development, we show that remittances reduce significantly the prevalence of child labor in developing countries characterized by weak financial systems and by strong income instability. However, we have not found a statistically significant relationship between adults emigration and child labor at home.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 30 (2010)
Issue (Month): 1 ()
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Remittances; Financial development; Income variability; Child labor; Instrumental variables;
Find related papers by JEL classification:
- F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
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