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The Effect of Remittances on Child Labor: Cross-Country Evidence

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  • Christian Hubert Ebeke

    ()
    (CERDI-Université d''Auvergne Clermont 1 (FRANCE))

Abstract

This 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 Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 30 (2010)
Issue (Month): 1 ()
Pages: 351-364

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Handle: RePEc:ebl:ecbull:eb-09-00662

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Related research

Keywords: Remittances; Financial development; Income variability; Child labor; Instrumental variables;

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References

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  1. Edwards, Alejandra Cox & Ureta, Manuelita, 2003. "International migration, remittances, and schooling: evidence from El Salvador," Journal of Development Economics, Elsevier, vol. 72(2), pages 429-461, December.
  2. Calero, Carla & Bedi, Arjun S. & Sparrow, Robert, 2008. "Remittances, Liquidity Constraints and Human Capital Investments in Ecuador," IZA Discussion Papers 3358, Institute for the Study of Labor (IZA).
  3. Cigno, Alessandro & Rosati, Furio C. & Guarcello, Lorenzo, 2002. "Does Globalization Increase Child Labor?," World Development, Elsevier, vol. 30(9), pages 1579-1589, September.
  4. McKenzie, David & Rapoport, Hillel, 2006. "Can migration reduce educational attainment ? Evidence from Mexico," Policy Research Working Paper Series 3952, The World Bank.
  5. Borraz Fernando, 2005. "Assessing the Impact of Remittances on Schooling: the Mexican Experience," Global Economy Journal, De Gruyter, vol. 5(1), pages 1-32, April.
  6. Giuliano, Paola & Ruiz-Arranz, Marta, 2009. "Remittances, financial development, and growth," Journal of Development Economics, Elsevier, vol. 90(1), pages 144-152, September.
  7. Alan Krueger, 1996. "Observations on International Labor Standards and Trade," Working Papers 741, Princeton University, Department of Economics, Industrial Relations Section..
  8. Sanket Mohapatra & George Joseph & Dilip Ratha, 2012. "Remittances and natural disasters: ex-post response and contribution to ex-ante preparedness," Environment, Development and Sustainability, Springer, vol. 14(3), pages 365-387, June.
  9. Ranjan, Priya, 2001. "Credit constraints and the phenomenon of child labor," Journal of Development Economics, Elsevier, vol. 64(1), pages 81-102, February.
  10. Robert C. Shelburne, 2001. "An Explanation of the International Variation in the Prevalence of Child Labour," The World Economy, Wiley Blackwell, vol. 24(3), pages 359-378, 03.
  11. John Luke Gallup & Jeffrey D. Sachs & Andrew Mellinger, 1999. "Geography and Economic Development," CID Working Papers 1, Center for International Development at Harvard University.
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  13. Flug, Karnit & Spilimbergo, Antonio & Wachtenheim, Erik, 1998. "Investment in education: do economic volatility and credit constraints matter?," Journal of Development Economics, Elsevier, vol. 55(2), pages 465-481, April.
  14. Gallup, J.L. & Sachs, J.D. & Mullinger, A., 1999. "Geography and Economic Development," Papers 1, Chicago - Graduate School of Business.
  15. Lorenzo Guarcello & Fabrizia Mealli & Furio Rosati, 2010. "Household vulnerability and child labor: the effect of shocks, credit rationing, and insurance," Journal of Population Economics, Springer, vol. 23(1), pages 169-198, January.
  16. David McKenzie & Hillel Rapoport, 2006. "Can Migration Reduce Educational Attainments? Depressing Evidence from Mexico," CReAM Discussion Paper Series 0601, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  17. Ronald B. Davies & Annie Voy, 2007. "The Effect of FDI on Child Labor," The Institute for International Integration Studies Discussion Paper Series iiisdp215, IIIS.
  18. Frédéric Docquier & B. Lindsay Lowell & Abdeslam Marfouk, 2009. "A Gendered Assessment of Highly Skilled Emigration," Population and Development Review, The Population Council, Inc., vol. 35(2), pages 297-321.
  19. Alejandra Cox Edwards & Manuelita Ureta, 2003. "International Migration, Remittances, and Schooling: Evidence from El Salvador," NBER Working Papers 9766, National Bureau of Economic Research, Inc.
  20. Freund, Caroline & Spatafora, Nikola, 2008. "Remittances, transaction costs, and informality," Journal of Development Economics, Elsevier, vol. 86(2), pages 356-366, June.
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  22. Ranjan, Priya, 1999. "An economic analysis of child labor," Economics Letters, Elsevier, vol. 64(1), pages 99-105, July.
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Cited by:
  1. Delphine Boutin, 2011. "Envoi de fonds et allocation du temps des enfants au Niger : L'effet indirect des chocs négatifs," Working Papers hal-00637607, HAL.
  2. Christian Ebeke, 2011. "Transferts des migrants, ouverture sur l'extérieur et dépenses publiques dans les pays en développement," Working Papers halshs-00552983, HAL.
  3. Delphine Boutin, 2011. "Envoi de fonds et allocation du temps des enfants au Niger : L’effet indirect des chocs négatifs," Larefi Working Papers 1105, Larefi, Université Bordeaux 4.
  4. Jamal BOUOIYOUR & Amal MIFTAH, 2013. "Transferts de fonds, éducation et travail des enfants au Maroc. Une analyse par score de propension," Working Papers 2012-2013_5, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Apr 2013.
  5. Boutin, Delphine, 2014. "Remittances and Child Labour in Africa: Evidence from Burkina Faso," IZA Discussion Papers 8007, Institute for the Study of Labor (IZA).

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