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Compulsory and Voluntary Remittances: Evidence from Child Domestic Workers in Tunisia

Based on a survey we conducted among domestic workers in Tunisia, we find that slightly more than half are younger than 18 years old. Most live with their employer and have their wages remitted directly to their parents. We define such remittances as compulsory as opposed to voluntary, and establish that having more young sisters means a higher likelihood of observing compulsory remittances, but that voluntary remittances increase with the number of young brothers. Parents who own some farm assets, or their house, can extract more compulsory remittances from their daughters than other parents. Older domestic workers face lower compulsory remittances, and voluntarily remit less. Finally, we reject the standard tobit model in favour of a type-2 tobit or Gragg's specification.

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Paper provided by HEC Montréal, Institut d'économie appliquée in its series Cahiers de recherche with number 04-04.

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Length: 46 pages
Date of creation: Jul 2004
Date of revision:
Handle: RePEc:iea:carech:0404
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  1. 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.
  2. Adams, Richard H, Jr, 1998. "Remittances, Investment, and Rural Asset Accumulation in Pakistan," Economic Development and Cultural Change, University of Chicago Press, vol. 47(1), pages 155-73, October.
  3. de la Briere, Benedicte & Sadoulet, Elisabeth & de Janvry, Alain & Lambert, Sylvie, 2002. "The roles of destination, gender, and household composition in explaining remittances: an analysis for the Dominican Sierra," Journal of Development Economics, Elsevier, vol. 68(2), pages 309-328, August.
  4. Bhalotra, Sonia, 2001. "Is child work necessary?," Social Protection Discussion Papers 24660, The World Bank.
  5. Fortin, Bernard & Lacroix, Guy & Montmarquette, Claude, 1997. "Are Underground Workers More Likely to be Underground Consumers?," Cahiers de recherche 9710, Université Laval - Département d'économique.
  6. Park, Cheolsung, 2003. "Interhousehold Transfers between Relatives in Indonesia: Determinants and Motives," Economic Development and Cultural Change, University of Chicago Press, vol. 51(4), pages 929-44, July.
  7. Gersovitz, Mark, 1988. "Saving and development," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 10, pages 381-424 Elsevier.
  8. Ranjan, P., 1999. ""Credit Constraints and the Phenomenon of Child Labor"," Papers 98-99-12, California Irvine - School of Social Sciences.
  9. Blundell, Richard & Smith, Richard J., 1994. "Coherency and estimation in simultaneous models with censored or qualitative dependent variables," Journal of Econometrics, Elsevier, vol. 64(1-2), pages 355-373.
  10. Stark, Oded & Lucas, Robert E B, 1988. "Migration, Remittances, and the Family," Economic Development and Cultural Change, University of Chicago Press, vol. 36(3), pages 465-81, April.
  11. Michaud, Pierre-Carl & Vencatachellum, Desire, 2003. "Human Capital Externalities in South Africa," Economic Development and Cultural Change, University of Chicago Press, vol. 51(3), pages 603-28, April.
  12. Hay, Michael J, 1980. "A Structural Equations Model of Migration in Tunisia," Economic Development and Cultural Change, University of Chicago Press, vol. 28(2), pages 345-58, January.
  13. Sylvain E. Dessy & Désiré Vencatachellum, 2003. "Explaining cross-country differences in policy response to child labour," Canadian Journal of Economics, Canadian Economics Association, vol. 36(1), pages 1-20, February.
  14. J. Edward Taylor & Scott Rozelle & Alan deBrauw, 1999. "Migration, Remittances, and Agricultural Productivity in China," American Economic Review, American Economic Association, vol. 89(2), pages 287-291, May.
  15. Rosenzweig, Mark R. & Stark, Oded, 1987. "Consumption Smoothing, Migration and Marriage: Evidence from Rural India," Bulletins 7515, University of Minnesota, Economic Development Center.
  16. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June.
  17. Lin, Tsai-Fen & Schmidt, Peter, 1984. "A Test of the Tobit Specification against an Alternative Suggested by Cragg," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 174-77, February.
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