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You get what you pay for: Schooling incentives and child labor

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  • Edmonds, Eric V.
  • Shrestha, Maheshwor

Abstract

Can schooling promotion deter child participation in hazardous forms of child labor? We examine two interventions intended to promote schooling and deter child labor for children associated with carpet factories in Kathmandu. The first intervention provides scholarships for school-related expenses. The second provides the scholarship and an in-kind stipend conditional on school attendance. Paying for schooling expenses promotes schooling but only at the beginning of the school year when most schooling expenses occur. The scholarship combined with the conditional stipend increases school attendance rates by 11%, decreases grade failure rates by 46%, and reduces carpet weaving by 48%. Financial support lasted one year. Effects on schooling and weaving do not persist past the year of support. “You get what you pay for” when schooling incentives are used to combat hazardous child labor.

Suggested Citation

  • Edmonds, Eric V. & Shrestha, Maheshwor, 2014. "You get what you pay for: Schooling incentives and child labor," Journal of Development Economics, Elsevier, vol. 111(C), pages 196-211.
  • Handle: RePEc:eee:deveco:v:111:y:2014:i:c:p:196-211
    DOI: 10.1016/j.jdeveco.2014.09.005
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    Cited by:

    1. Del Carpio, Ximena V. & Loayza, Norman V. & Wada, Tomoko, 2016. "The Impact of Conditional Cash Transfers on the Amount and Type of Child Labor," World Development, Elsevier, vol. 80(C), pages 33-47.
    2. Elena del Rey & Sergi Jiménez-Martín & Judit Vall-Castello, 2015. "The Effect of Changes in the Statutory Minimum Working Age on Educational, Labor And Health Outcomes," Working Papers 834, Barcelona Graduate School of Economics.
    3. Pierre ANDRE & Esther DELESALLE & Christelle DUMAS, 2019. "Returns to farm child labor in Tanzania," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2019005, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    4. Kenneth A. Swinnerton, 2016. "How do adult returns to schooling affect children’s enrollment?," IZA World of Labor, Institute of Labor Economics (IZA), pages 305-305, October.
    5. Vinish Shrestha & Rashesh Shrestha, 2017. "Multigenerational Effects of Education Reform: Mother's Education and Children's Human Capital in Nepal," Working Papers 2017-03, Towson University, Department of Economics, revised Jan 2019.
    6. repec:uwp:jhriss:v:54:y:2019:i:2:p:503-531 is not listed on IDEAS
    7. Vinish Shrestha & Rashesh Shrestha, 2017. "Intergenerational effect of education reform program and maternal education on children's educational and labor outcomes: evidence from Nepal," Departmental Working Papers 2017-07, The Australian National University, Arndt-Corden Department of Economics.
    8. Teresa Molina Millan & Karen Macours, 2017. "Attrition in randomized control trials: Using tracking information to correct bias," NOVAFRICA Working Paper Series wp1702, Universidade Nova de Lisboa, Faculdade de Economia, NOVAFRICA.
    9. Valentina Rotondi & Francesco Billari, 2017. "Mobile Money and School Participation: Evidence from Low Income Countries," Working Papers 109, "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi.
    10. Jacobus de Hoop & Jed Friedman & Eeshani Kandpal & Furio C. Rosati, 2019. "Child Schooling and Child Work in the Presence of a Partial Education Subsidy," Journal of Human Resources, University of Wisconsin Press, vol. 54(2), pages 503-531.
    11. Dammert, Ana C. & de Hoop, Jacobus & Mvukiyehe, Eric & Rosati, Furio C., 2018. "Effects of public policy on child labor: Current knowledge, gaps, and implications for program design," World Development, Elsevier, vol. 110(C), pages 104-123.
    12. Vinish Shrestha & Rashesh Shrestha, 2017. "Intergenerational effect of education reform: mother's education and children's human capital in Nepal," Working Papers 2017-05, Towson University, Department of Economics, revised Oct 2017.
    13. Guirkinger, Catherine & Platteau, Jean-Philippe, 2019. "The dynamics of family systems: lessons from past and present times," CEPR Discussion Papers 13570, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    Education; School subsidies; Conditional transfers; School enrollment; Child labor; Labor standards; Nepal;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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