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Does Child Labour Displace Schooling? Evidence on Behavioural Responses to an Enrollment Subsidy

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Ravallion, Martin
Wodon, Quentin

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Abstract

It is often argued that child labour comes at the expense of schooling and so perpetuates poverty for children from poor families. To test this claim we study the effects on children's labour force participation and school enrollments of the pure school-price change induced by a targeted enrollment subsidy in rural Bangladesh. Our theoretical model predicts that the subsidy increases schooling, but its effect on child labour is ambiguous. Our empirical model indicates that the subsidy increased schooling by far more than it reduced child labour. Substitution effects helped protect current incomes from the higher school attendance induced by the subsidy.

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Publisher Info
Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 110 (2000)
Issue (Month): 462 (March)
Pages: C158-75
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Handle: RePEc:ecj:econjl:v:110:y:2000:i:462:p:c158-75

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Rosenzweig, Mark R, 1982. "Educational Subsidy, Agricultural Development, and Fertility Change," The Quarterly Journal of Economics, MIT Press, vol. 97(1), pages 67-88, February. [Downloadable!] (restricted)
  2. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
  3. Baland, J.M. & Robinson, J.A., 1998. "A Model of Child Labor," Papers 9803, Southern California - Department of Economics.
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  4. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November. [Downloadable!] (restricted)
  5. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May. [Downloadable!] (restricted)
  6. Jacoby, Hanan G & Skoufias, Emmanuel, 1997. "Risk, Financial Markets, and Human Capital in a Developing Country," Review of Economic Studies, Blackwell Publishing, vol. 64(3), pages 311-35, July. [Downloadable!] (restricted)
  7. Grootaert, Christiaan & Kanbur, Ravi, 1995. "Child labor : a review," Policy Research Working Paper Series 1454, The World Bank. [Downloadable!]
  8. Swaminathan, Madhura, 1998. "Economic growth and the persistence of child labor: Evidence from an Indian city," World Development, Elsevier, vol. 26(8), pages 1513-1528, August. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Rajeev Dehejia & Roberta Gatti, 2002. "Child Labor: The Role of Income Variability and Access to Credit Across Countries," NBER Working Papers 9018, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Kaushik Basu & Pham Hoang Van, 1999. "The Economics of Child Labor: Reply," American Economic Review, American Economic Association, vol. 89(5), pages 1386-1388, December. [Downloadable!] (restricted)
  3. Schady, Norbert & Filmer, Deon, 2006. "Getting girls into school : evidence from a scholarship program in Cambodia," Policy Research Working Paper Series 3910, The World Bank. [Downloadable!]
  4. Gautam Hazarika & Arjun S. Bedi, 2006. "Child Work and Schooling Costs in Rural Northern India," IZA Discussion Papers 2136, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Ahmed, Akhter U. & del Ninno, Carlo, 2002. "The Food For Education program in Bangladesh," FCND discussion papers 138, International Food Policy Research Institute (IFPRI). [Downloadable!]
  6. P. Deb & F. Rosati, 2002. "Determinants of Child Labour and School Attendance: The Role of Household Unobservables," UCW Working Paper 9, Understanding Children's Work (UCW Project). [Downloadable!]
    Other versions:
  7. M.Biggeri & L.Guarcello & S.Lyon & F.Rosati, 2003. "The Puzzle of 'Idle' Children: Neither in School nor performing Economic Activity: Evidence from six Countries," UCW Working Paper 5, Understanding Children's Work (UCW Project). [Downloadable!]
  8. Cameron, Lisa A., 2002. "Did social safety net scholarships reduce drop-out rates during the Indonesian economic crisis?," Policy Research Working Paper Series 2800, The World Bank. [Downloadable!]
  9. Cynthia B. Lloyd, 2001. "World population in 2050: assessing the projections: discussion," Conference Series ; [Proceedings], Federal Reserve Bank of Boston. [Downloadable!]
  10. P. Deb & F. Rosati, 2004. "Estimating the effect of fertility decisions on child labour and schooling," UCW Working Paper 30, Understanding Children's Work (UCW Project). [Downloadable!]
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  11. Schady, Norbert & Araujo, Maria Caridad, 2006. "Cash transfers, conditions, school enrollment, and child work : evidence from a randomized experiment in Ecuador," Policy Research Working Paper Series 3930, The World Bank. [Downloadable!]
  12. David K. Evans & Arkadipta Ghosh, 2008. "Prioritizing Educational Investments in Children in the Developing World," Working Papers 587, RAND Corporation Publications Department. [Downloadable!]
  13. Gautam Hazarika & Sudipta Sarangi, 2005. "Household Access to Microcredit and Child Work in Rural Malawi," IZA Discussion Papers 1567, Institute for the Study of Labor (IZA). [Downloadable!]
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  14. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2001. "Child Labor: Theory, Evidence and Policy," Discussion Papers Series, Department of Economics, Tufts University 0111, Department of Economics, Tufts University. [Downloadable!]
    Other versions:
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