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Child Schooling and Child Work in the Presence of a Partial Education Subsidy

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  • de Hoop, Jacobus

    (World Bank)

  • Friedman, Jed

    (World Bank)

  • Kandpal, Eeshani

    (World Bank)

  • Rosati, Furio C.

    (University of Rome Tor Vergata)

Abstract

Could a partial subsidy for child education increase children's participation in paid work? In contrast to much of the theoretical and empirical child labor literature, this paper shows that child work and school participation can be complements under certain conditions. Using data from the randomized evaluation of a conditional cash transfer program in the Philippines, the analysis finds that some children, who were in neither school nor work before the program, increased participation in school and work-for-pay after the program. Earlier cash transfer programs, notably those in Mexico, Brazil, and Ecuador, increased school attendance while reducing child labor. Those programs fully offset schooling costs, while the transfers under the Philippine transfers fall short of the full costs of schooling for a typical child. As a result, some beneficiary children from poor Philippine households increased work to support their schooling. The additional earnings from this work represent a substantive share of the shortfall in the schooling costs net of transfer. The paper rules out several potential alternative explanations for the increase in child labor, including changes in household productive activities, adult labor supply, and household expenditure patterns that, in principle, can arise after a cash transfer and may also affect the supply of or demand for child labor.

Suggested Citation

  • de Hoop, Jacobus & Friedman, Jed & Kandpal, Eeshani & Rosati, Furio C., 2017. "Child Schooling and Child Work in the Presence of a Partial Education Subsidy," IZA Discussion Papers 10992, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp10992
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    References listed on IDEAS

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    3. Bertoni, Marco & Huynh, Quynh & Rocco, Lorenzo, 2019. "The Effects of the Vietnam Hunger Eradication and Poverty Reduction Program on Schooling," IZA Discussion Papers 12747, Institute of Labor Economics (IZA).
    4. Awaworyi Churchill, Sefa & Iqbal, Nasir & Nawaz, Saima & Yew, Siew Ling, 2021. "Unconditional cash transfers, child labour and education: theory and evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 186(C), pages 437-457.
    5. Casco, José L., 2022. "Household choices of child activities in the presence of cash transfers," Journal of Economic Behavior & Organization, Elsevier, vol. 196(C), pages 524-545.
    6. Edmonds, Eric & Theoharides, Caroline, 2020. "The short term impact of a productive asset transfer in families with child labor: Experimental evidence from the Philippines," Journal of Development Economics, Elsevier, vol. 146(C).
    7. Alberto Chong & Virgilio Galdo, 2021. "Direct and indirect effects of a massive piped water expansion on child‐related outcomes," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1576-1600, August.
    8. Hidayatina, Achsanah & Garces-Ozanne, Arlene, 2019. "Can cash transfers mitigate child labour? Evidence from Indonesia’s cash transfer programme for poor students in Java," World Development Perspectives, Elsevier, vol. 15(C), pages 1-1.
    9. Delphine BOUTIN & Marine JOUVIN, 2022. "Child Labour Consequences on Education and Health: A Review of Evidence and Knowledge Gaps," Bordeaux Economics Working Papers 2022-14, Bordeaux School of Economics (BSE).
    10. Cepaluni, Gabriel & Chewning, Taylor Kinsley & Driscoll, Amanda & Faganello, Marco Antonio, 2022. "Conditional cash transfers and child labor," World Development, Elsevier, vol. 152(C).

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    More about this item

    Keywords

    cash transfers; child labor; education; education subsidy; Philippines;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis

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