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Poverty alleviation and child labor

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Author Info
Edmonds, Eric V.
Schady, Norbert

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Abstract

Does child labor decrease as household income rises? This question has important implications for the design of policy on child labor. This paper focuses on a program of unconditional cash transfers in Ecuador. It argues that the effect of a small increase in household income on child labor should be concentrated among children most vulnerable to transitioning from schooling to work. The paper finds support for this hypothesis. Cash transfers have small effects on child time allocation at peak school attendance ages and among children already out of school at baseline, but have large impacts at ages and in groups most likely to leave school and start work. Additional income is associated with a decline in paid work that takes place away from the child's home. Declines in work for pay are associated with increases in school enrollment, especially for girls. Increases in schooling are matched by an increase in education expenditures that appears to absorb most of the cash transfer. However, total household expenditures do not increase with the transfer and appear to fall in households most impacted by the transfer because of the decline in child labor.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4702.

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Date of creation: 01 Aug 2008
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Handle: RePEc:wbk:wbrwps:4702

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Keywords: Street Children; Youth and Governance; Gender and Law; Labor Policies; Primary Education;

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  1. Barham, Vicky & Boadway, Robin & Marchand, Maurice & Pestieau, Pierre, 1995. "Education and the poverty trap," European Economic Review, Elsevier, vol. 39(7), pages 1257-1275, August. [Downloadable!] (restricted)
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  2. Attanasio, Orazio & Fitzsimons, Emla & Gomez, Ana & Lopez, Diana & Meghir, Costas & Mesnard, Alice, 2006. "Child Education and Work Choices in the Presence of a Conditional Cash Transfer Programme in Rural Colombia," CEPR Discussion Papers 5792, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  3. Eric Edmonds, 2007. "Child Labor," Working Papers id:988, esocialsciences.com. [Downloadable!]
  4. Ranjan, Priya, 2001. "Credit constraints and the phenomenon of child labor," Journal of Development Economics, Elsevier, vol. 64(1), pages 81-102, February. [Downloadable!] (restricted)
    Other versions:
  5. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
  6. Marco Manacorda, 2006. "Child Labor and the Labor Supply of Other Household Members: Evidence from 1920 America," American Economic Review, American Economic Association, vol. 96(5), pages 1788-1801, December. [Downloadable!]
  7. Matthias Doepke & Fabrizio Zilibotti, 2005. "The Macroeconomics of Child Labor Regulation," American Economic Review, American Economic Association, vol. 95(5), pages 1492-1524, December. [Downloadable!]
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  8. Eric V. Edmonds, 2007. "Child Labor," NBER Working Papers 12926, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. M. Manacorda & F. C. Rosati, 2007. "Local labor demand and child labor," UCW Working Paper 34, Understanding Children's Work (UCW Project). [Downloadable!]
  10. Basu, Kaushik & Das, Sanghamitra & Dutta, Bhaskar, 2009. "Child Labor and Household Wealth : Theory and Empirical Evidence of an Inverted-U," The Warwick Economics Research Paper Series (TWERPS) 888, University of Warwick, Department of Economics. [Downloadable!]
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  11. Fafchamps, Marcel & Wahba, Jackline, 2006. "Child labor, urban proximity, and household composition," Journal of Development Economics, Elsevier, vol. 79(2), pages 374-397, April. [Downloadable!] (restricted)
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  12. Schady, Norbert & Rosero, José, 2008. "Are cash transfers made to women spent like other sources of income?," Economics Letters, Elsevier, vol. 101(3), pages 246-248, December. [Downloadable!] (restricted)
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  13. Norbert R. Schady, 2004. "Do Macroeconomic Crises Always Slow Human Capital Accumulation?," World Bank Economic Review, Oxford University Press, vol. 18(2), pages 131-154.
  14. Deon Filmer & Norbert Schady, 2008. "Getting Girls into School: Evidence from a Scholarship Program in Cambodia," Economic Development and Cultural Change, University of Chicago Press, vol. 56, pages 581-617. [Downloadable!]
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  15. Edmonds, Eric V., 2006. "Child labor and schooling responses to anticipated income in South Africa," Journal of Development Economics, Elsevier, vol. 81(2), pages 386-414, December. [Downloadable!] (restricted)
  16. Jean-Marie Baland & James A. Robinson, 2000. "Is Child Labor Inefficient?," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 663-679, August. [Downloadable!] (restricted)
  17. Banerjee, Abhijit V & Newman, Andrew F, 1993. "Occupational Choice and the Process of Development," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 274-98, April. [Downloadable!] (restricted)
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  18. Ravallion, Martin & Wodon, Quentin, 2000. "Does Child Labour Displace Schooling? Evidence on Behavioural Responses to an Enrollment Subsidy," Economic Journal, Royal Economic Society, vol. 110(462), pages C158-75, March. [Downloadable!] (restricted)
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  19. Eric V. Edmonds, 2005. "Does Child Labor Decline with Improving Economic Status?," Journal of Human Resources, University of Wisconsin Press, vol. 40(1). [Downloadable!] (restricted)
  20. Mueller, Eva, 1984. "The value and allocation of time in rural Botswana," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 329-360. [Downloadable!] (restricted)
  21. 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!]
  22. Kruger, Diana I., 2007. "Coffee production effects on child labor and schooling in rural Brazil," Journal of Development Economics, Elsevier, vol. 82(2), pages 448-463, March. [Downloadable!] (restricted)
  23. Paul Schultz, T., 2004. "School subsidies for the poor: evaluating the Mexican Progresa poverty program," Journal of Development Economics, Elsevier, vol. 74(1), pages 199-250, June. [Downloadable!] (restricted)
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