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Child Labor, Child Schooling, and Their Interaction with Adult Labor: Empirical Evidence for Peru and Pakistan

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  • Ray, Ranjan

Abstract

Using data from Peru and Pakistan, this article tests two hypotheses: there is a positive association between hours of child labor and poverty, and there is a negative association between child schooling and poverty. Both of these hypotheses are confirmed by the Pakistani data, but not by the Peruvian data. The reduction in poverty rates due to income from children's labor is greater in Pakistan than in Peru. The nature of interaction between adult and child labor markets varies with the gender of the child and the adult. In Peru rising men's wages significantly reduce the labor hours of girls, whereas in Pakistan there is a strong complementarity between women's and girls' labor markets. Both data sets agree on the positive role that increasing adult education can play in improving child welfare. Copyright 2000 by Oxford University Press.

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Bibliographic Info

Article provided by World Bank Group in its journal World Bank Economic Review.

Volume (Year): 14 (2000)
Issue (Month): 2 (May)
Pages: 347-67

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Handle: RePEc:oup:wbecrv:v:14:y:2000:i:2:p:347-67

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  1. Sonia Bhalotra, 2003. "Child Labour in Africa," OECD Social, Employment and Migration Working Papers 4, OECD Publishing.
  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. Grosh, M.E. & Glewwe, P., 1995. "A Guide to Living Standards Measurement Study Surveys and their Data Sets," Papers 120, World Bank - Living Standards Measurement.
  4. Ray, Ranjan, 1983. "Measuring the costs of children : An alternative approach," Journal of Public Economics, Elsevier, vol. 22(1), pages 89-102, October.
  5. Charles Diamond & Tammy Fayed, 1998. "Evidence on substitutability of adult and child labour," Journal of Development Studies, Taylor & Francis Journals, vol. 34(3), pages 62-70.
  6. Chiappori, Pierre-Andre & Haddad, Lawrence & Hoddinott, John & Kanbur, Ravi, 1993. "Unitary versus collective models of the household : time to shift theburden of proof?," Policy Research Working Paper Series 1217, The World Bank.
  7. Rosenzweig, Mark R & Evenson, Robert E, 1977. "Fertility, Schooling, and the Economic Contribution of Children in Rural India: An Econometric Analysis," Econometrica, Econometric Society, vol. 45(5), pages 1065-79, July.
  8. Kaushik Basu, 1999. "Child Labor: Cause, Consequence, and Cure, with Remarks on International Labor Standards," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1083-1119, September.
  9. Lancaster, Geoffrey & Ray, Ranjan & Valenzuela, Maria Rebecca, 1999. "A Cross-Country Study of Household Poverty and Inequality on Unit Record Household Budget Data," Economic Development and Cultural Change, University of Chicago Press, vol. 48(1), pages 177-208, October.
  10. Peter Jensen & Helena Skyt Nielsen, 1997. "Child labour or school attendance? Evidence from Zambia," Journal of Population Economics, Springer, vol. 10(4), pages 407-424.
  11. Grootaert, Christiaan, 1998. "Child labor in Cote d'Ivoire: incidence and determinants," Policy Research Working Paper Series 1905, The World Bank.
  12. Alderman, Harold, et al, 1995. "Unitary versus Collective Models of the Household: Is It Time to Shift the Burden of Proof?," World Bank Research Observer, World Bank Group, vol. 10(1), pages 1-19, February.
  13. George Psacharopoulos, 1997. "Child labor versus educational attainment Some evidence from Latin America," Journal of Population Economics, Springer, vol. 10(4), pages 377-386.
  14. James H. Grant & Daniel S. Hamermesh, 1980. "Labor Market Competition among Youths, White Women, and Others," NBER Working Papers 0519, National Bureau of Economic Research, Inc.
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