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Not so fast! Cash transfers can increase child labor: Evidence for Bolivia

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  • Chong, Alberto
  • Yáñez-Pagans, Monica

Abstract

Using data for Bolivia we study how a national-level unconditional cash transfer programs can causally affect child labor. We estimate intent-to-treat effects under a fuzzy regression discontinuity approach by taking advantage of the fact that the probability of receiving the pension changes discontinuously at the eligibility age. We also estimate average treatment effects on the treated by using eligibility as an instrumental variable for receipt. We find substantial increases in the probability that boys in rural areas engage in child labor.

Suggested Citation

  • Chong, Alberto & Yáñez-Pagans, Monica, 2019. "Not so fast! Cash transfers can increase child labor: Evidence for Bolivia," Economics Letters, Elsevier, vol. 179(C), pages 57-61.
    • Handle: RePEc:eee:ecolet:v:179:y:2019:i:c:p:57-61
    DOI: 10.1016/j.econlet.2019.03.021
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    References listed on IDEAS

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    1. Joseph P. Romano & Michael Wolf, 2005. "Stepwise Multiple Testing as Formalized Data Snooping," Econometrica, Econometric Society, vol. 73(4), pages 1237-1282, July.
    2. von Gersdorff, Hermann, 1997. "Pension reform in Bolivia : innovative solutions to common problems," Policy Research Working Paper Series 1832, The World Bank.
    3. Romano, Joseph P. & Wolf, Michael, 2016. "Efficient computation of adjusted p-values for resampling-based stepdown multiple testing," Statistics & Probability Letters, Elsevier, vol. 113(C), pages 38-40.
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    Cited by:

    1. Bottan, Nicolas & Hoffmann, Bridget & Vera-Cossio, Diego A., 2021. "Stepping up during a crisis: The unintended effects of a noncontributory pension program during the Covid-19 pandemic," Journal of Development Economics, Elsevier, vol. 150(C).
    2. Stark, Oded & Budzinski, Wiktor, 2023. "The demand for gratitude as a restraint on the use of child labor: A hypothesis," Journal of Demographic Economics, Cambridge University Press, vol. 89(1), pages 137-147, March.
    3. Alberto Chong & Carla Srebot, 2023. "Can Regional Trade Agreements Negatively Impact Primary Schooling?," Open Economies Review, Springer, vol. 34(2), pages 317-339, April.
    4. Ahrens, Achim & Hangartner, Dominik & Casalis, Marine & Sánchez, Rodrigo, 2023. "Cash-Based Interventions Improve Multidimensional Integration Outcomes of Venezuelan Immigrants," SocArXiv 5sh8a, Center for Open Science.
    5. Alberto Chong & Virgilio Galdo, 2021. "Direct and indirect effects of a massive piped water expansion on child‐related outcomes," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1576-1600, August.
    6. Dagim Dawit Gonsamo & Herman Hay Ming Lo & Ko Ling Chan, 2021. "The Role of Stomach Infrastructures on Children’s Work and Child Labour in Africa: Systematic Review," IJERPH, MDPI, vol. 18(16), pages 1-26, August.

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    More about this item

    Keywords

    Unconditional cash transfers; Child labor; Old-age pension; Bolivia;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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