Advanced Search
MyIDEAS: Login to save this paper or follow this series

The power of Remittances on the Prevalence of Child Labor

Contents:

Author Info

  • Christian EBEKE

Abstract

This article 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 inflows of remittances help to offset the effects of financial constraints and income shocks on the prevalence of child labor. Starting from a simple theoretical model, then based 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. Policy recommendations for specific strategies to facilitate receipt of remittances by households are more than ever appropriate for a region like Sub-Saharan Africa, which currently receives a small fraction of these funds compared to other developing countries, and where the prevalence of child labor is still a serious issue.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://publi.cerdi.org/ed/2009/2009.24.pdf
Download Restriction: no

Bibliographic Info

Paper provided by CERDI in its series Working Papers with number 200924.

as in new window
Length: 27
Date of creation: 2009
Date of revision:
Handle: RePEc:cdi:wpaper:1111

Contact details of provider:
Postal: 65 Bd. F. Mitterrand, 63000 Clermont-Ferrand
Phone: (33-4) 73 17 74 00
Fax: (33-4) 73 17 74 28
Web page: http://cerdi.org/
More information through EDIRC

Related research

Keywords: Remittances; Financial Development; Income variability; Child Labor; LDCs; instrumental variables;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
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.:
as in new window
  1. Cigno, Alessandro & Rosati, Furio C. & Guarcello, Lorenzo, 2002. "Does Globalisation Increase Child Labour?," IZA Discussion Papers 470, Institute for the Study of Labor (IZA).
  2. Neumayer, Eric & de Soysa, Indra, 2005. "Trade Openness, Foreign Direct Investment and Child Labor," World Development, Elsevier, Elsevier, vol. 33(1), pages 43-63, January.
  3. Carol Rogers & Kenneth A. Swinnerton, 2002. "Does Child Labor Decrease When Parental Incomes Rises," Working Papers, Georgetown University, Department of Economics gueconwpa~02-02-02, Georgetown University, Department of Economics.
  4. Epstein, Gil S. & Kahana, Nava, 2008. "Child labor and temporary emigration," Economics Letters, Elsevier, Elsevier, vol. 99(3), pages 545-548, June.
  5. Lisa Chauvet & Sandrine Mesplé-Somps, 2006. "Impact des financements internationaux sur les inégalités des pays en développement," Working Papers, DIAL (Développement, Institutions et Mondialisation) DT/2006/18, DIAL (Développement, Institutions et Mondialisation).
  6. Calero, Carla & Bedi, Arjun S. & Sparrow, Robert, 2009. "Remittances, Liquidity Constraints and Human Capital Investments in Ecuador," World Development, Elsevier, Elsevier, vol. 37(6), pages 1143-1154, June.
  7. Adams, Richard Jr. & Page, John, 2005. "Do international migration and remittances reduce poverty in developing countries?," World Development, Elsevier, Elsevier, vol. 33(10), pages 1645-1669, October.
  8. McKenzie, David & Rapoport, Hillel, 2006. "Can migration reduce educational attainment ? Evidence from Mexico," Policy Research Working Paper Series, The World Bank 3952, The World Bank.
  9. Alan B. Krueger, 1996. "Observations on International Labor Standards and Trade," NBER Working Papers 5632, National Bureau of Economic Research, Inc.
  10. Dani Rodrik, 1996. "Why Do More Open Economies Have Bigger Governments?," NBER Working Papers 5537, National Bureau of Economic Research, Inc.
  11. Frédéric Docquier & B. Lindsay Lowell & Abdeslam Marfouk, 2009. "A Gendered Assessment of Highly Skilled Emigration," Population and Development Review, The Population Council, Inc., The Population Council, Inc., vol. 35(2), pages 297-321.
  12. Guarcelllo, Lorenzo & Mealli, Fabrizia & Rosati, Furio Camillo, 2003. "Household vulnerability and child labor : the effect of shocks, credit rationing and insurance," Social Protection Discussion Papers 29136, The World Bank.
  13. Dean Yang, 2006. "International Migration, Remittances, and Household Investment: Evidence from Philippine Migrants' Exchange Rate Shocks," NBER Working Papers 12325, National Bureau of Economic Research, Inc.
  14. Marta Ruiz-Arranz & Paola Giuliano, 2005. "Remittances, Financial Development, and Growth," IMF Working Papers, International Monetary Fund 05/234, International Monetary Fund.
  15. Yang Dean, 2008. "Coping with Disaster: The Impact of Hurricanes on International Financial Flows, 1970-2002," The B.E. Journal of Economic Analysis & Policy, De Gruyter, De Gruyter, vol. 8(1), pages 1-45, June.
  16. Valerie Koechlin & Gianmarco Leon, 2007. "International Remittances and Income Inequality: An Empirical Investigation," Journal of Economic Policy Reform, Taylor and Francis Journals, Taylor and Francis Journals, vol. 10(2), pages 123-141.
  17. Mohapatra, Sanket & Joseph, George & Ratha, Dilip, 2009. "Remittances and natural disasters : ex-post response and contribution to ex-ante preparedness," Policy Research Working Paper Series, The World Bank 4972, The World Bank.
  18. Flug, Karnit & Spilimbergo, Antonio & Wachtenheim, Erik, 1998. "Investment in education: do economic volatility and credit constraints matter?," Journal of Development Economics, Elsevier, Elsevier, vol. 55(2), pages 465-481, April.
  19. Robert C. Shelburne, 2001. "An Explanation of the International Variation in the Prevalence of Child Labour," The World Economy, Wiley Blackwell, Wiley Blackwell, vol. 24(3), pages 359-378, 03.
  20. Djankov, Simeon & McLiesh, Caralee & Shleifer, Andrei, 2007. "Private credit in 129 countries," Journal of Financial Economics, Elsevier, Elsevier, vol. 84(2), pages 299-329, May.
  21. Ranjan, Priya, 2001. "Credit constraints and the phenomenon of child labor," Journal of Development Economics, Elsevier, Elsevier, vol. 64(1), pages 81-102, February.
  22. Edmonds, Eric V & Pavcnik, Nina, 2004. "International Trade and Child Labour: Cross-Country Evidence," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4309, C.E.P.R. Discussion Papers.
  23. Ralitza Dimova & Gil S. Epstein & Ira N. Gang, 2011. "Migration, Transfers and Child Labor," Working Papers, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies) 297, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
  24. Jean-Marie Baland & James A. Robinson, 2000. "Is Child Labor Inefficient?," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 108(4), pages 663-679, August.
  25. Freund, Caroline & Spatafora, Nikola, 2008. "Remittances, transaction costs, and informality," Journal of Development Economics, Elsevier, Elsevier, vol. 86(2), pages 356-366, June.
  26. Ronald B. Davies & Annie Voy, 2007. "The Effect of FDI on Child Labor," The Institute for International Integration Studies Discussion Paper Series, IIIS iiisdp215, IIIS.
  27. Combes, Jean-Louis & Ebeke, Christian, 2011. "Remittances and Household Consumption Instability in Developing Countries," World Development, Elsevier, Elsevier, vol. 39(7), pages 1076-1089, July.
  28. Borraz Fernando, 2005. "Assessing the Impact of Remittances on Schooling: the Mexican Experience," Global Economy Journal, De Gruyter, De Gruyter, vol. 5(1), pages 1-32, April.
  29. Mansuri, Ghazala, 2006. "Migration, school attainment, and child labor : evidence from rural Pakistan," Policy Research Working Paper Series, The World Bank 3945, The World Bank.
  30. Gupta, Sanjeev & Pattillo, Catherine A. & Wagh, Smita, 2009. "Effect of Remittances on Poverty and Financial Development in Sub-Saharan Africa," World Development, Elsevier, Elsevier, vol. 37(1), pages 104-115, January.
  31. Woodruff, Christopher & Zenteno, Rene, 2007. "Migration networks and microenterprises in Mexico," Journal of Development Economics, Elsevier, Elsevier, vol. 82(2), pages 509-528, March.
  32. John Luke Gallup & Jeffrey D. Sachs & Andrew Mellinger, 1999. "Geography and Economic Development," CID Working Papers, Center for International Development at Harvard University 1, Center for International Development at Harvard University.
  33. Beegle, Kathleen & Dehejia, Rajeev H. & Gatti, Roberta, 2006. "Child labor and agricultural shocks," Journal of Development Economics, Elsevier, Elsevier, vol. 81(1), pages 80-96, October.
  34. Gallup, J.L. & Sachs, J.D. & Mullinger, A., 1999. "Geography and Economic Development," Papers, Chicago - Graduate School of Business 1, Chicago - Graduate School of Business.
  35. Duryea, Suzanne & Lam, David & Levison, Deborah, 2007. "Effects of economic shocks on children's employment and schooling in Brazil," Journal of Development Economics, Elsevier, Elsevier, vol. 84(1), pages 188-214, September.
  36. Edwards, Alejandra Cox & Ureta, Manuelita, 2003. "International migration, remittances, and schooling: evidence from El Salvador," Journal of Development Economics, Elsevier, Elsevier, vol. 72(2), pages 429-461, December.
  37. Cynthia Bansak & Brian Chezum, 2009. "How Do Remittances Affect Human Capital Formation of School-Age Boys and Girls?," American Economic Review, American Economic Association, American Economic Association, vol. 99(2), pages 145-48, May.
  38. Jihad Dagher & Ralph Chami & Peter Montiel & Yasser Abdih, 2008. "Remittances and Institutions," IMF Working Papers, International Monetary Fund 08/29, International Monetary Fund.
  39. Catrinescu, Natalia & Leon-Ledesma, Miguel & Piracha, Matloob & Quillin, Bryce, 2009. "Remittances, Institutions, and Economic Growth," World Development, Elsevier, Elsevier, vol. 37(1), pages 81-92, January.
  40. Dilip Ratha, 2006. "Leveraging remittances for development," Proceedings, Federal Reserve Bank of Dallas, Federal Reserve Bank of Dallas, pages 173-185.
  41. Ranjan, Priya, 1999. "An economic analysis of child labor," Economics Letters, Elsevier, Elsevier, vol. 64(1), pages 99-105, July.
  42. Acosta, Pablo & Fajnzylber, Pablo & Lopez, J. Humberto, 2007. "The impact of remittances on poverty and human capital : evidence from Latin American household surveys," Policy Research Working Paper Series, The World Bank 4247, The World Bank.
  43. 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.
  44. Dehejia, Rajeev H & Gatti, Roberta, 2005. "Child Labor: The Role of Financial Development and Income Variability across Countries," Economic Development and Cultural Change, University of Chicago Press, University of Chicago Press, vol. 53(4), pages 913-32, July.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cdi:wpaper:1111. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vincent Mazenod).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.