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Remittances, Child Labor, and Schooling: Evidence from Colombia

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  • Andres Cuadros-Menaca
  • Arya Gaduh

Abstract

We estimate the causal impact of remittances on child labor and school participation in Colombia using data from its main metropolitan areas. We develop an instrumental variable strategy that leverages the unemployment shocks induced by the 2008 financial crisis in Colombian migrants’ main destination countries. We find that remittances reduce child labor but not schooling. Relative to their mean participation shares, these impacts are larger for younger children and girls. However, the reduction in child labor among girls is associated with a large increase in participation in household work. Finally, we also find that even though remittances reduce the labor supply of female adults, their percent-change impact on adults is smaller than that on children.

Suggested Citation

  • Andres Cuadros-Menaca & Arya Gaduh, 2020. "Remittances, Child Labor, and Schooling: Evidence from Colombia," Economic Development and Cultural Change, University of Chicago Press, vol. 68(4), pages 1257-1293.
  • Handle: RePEc:ucp:ecdecc:doi:10.1086/702790
    DOI: 10.1086/702790
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    Cited by:

    1. Gonzalo Cómbita Mora & Óscar Pérez Rodríguez, 2020. "International Remittances and Child Welfare: A Case Study on Cali Colombia," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 86(3), pages 73-103, November.
    2. Bang, James & Mitra, Aniruddha & Abbas, Faisal, 2023. "Remittances and Child Labor in Pakistan: A Tale of Complementarities," GLO Discussion Paper Series 1285, Global Labor Organization (GLO).
    3. Randazzo, Teresa & Pavanello, Filippo & De Cian, Enrica, 2023. "Adaptation to climate change: Air-conditioning and the role of remittances," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).
    4. Shahateet, Mohammed Issa, 2022. "Does child labour increase unemployment and reduce labour force participation? Empirical evidence from Jordan," Children and Youth Services Review, Elsevier, vol. 137(C).
    5. Cuadros-Meñaca, Andres, 2020. "Remittances, health insurance, and pension contributions: Evidence from Colombia," World Development, Elsevier, vol. 127(C).

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