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You Get What You Pay For: Schooling Incentives and Child Labor

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  • Eric V. Edmonds
  • Maheshwor Shrestha

Abstract

Can efforts to promote education deter child labor? We report on the findings of a field experiment where a conditional transfer incentivized the schooling of children associated with carpet factories in Nepal. We find that schooling increases and child involvement in carpet weaving decreases when schooling is incentivized. As a simple static labor supply model would predict, we observe that treated children resort to their counterfactual level of school attendance and carpet weaving when schooling is no longer incentivized. From a child labor policy perspective, our findings imply that "You get what you pay for" when schooling incentives are used to combat hazardous child labor.

Suggested Citation

  • Eric V. Edmonds & Maheshwor Shrestha, 2013. "You Get What You Pay For: Schooling Incentives and Child Labor," NBER Working Papers 19279, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:19279 Note: CH DEV LS
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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. Kenneth A. Swinnerton, 2016. "How do adult returns to schooling affect children’s enrollment?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 305-305, October.
    4. Vinish Shrestha & Rashesh Shrestha, 2017. "Intergenerational Effect of Education Reform Program and Maternal Education on Children's Educational and Labor Outcomes: Evidence from Nepal," Working Papers 2017-03, Towson University, Department of Economics, revised May 2017.
    5. 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.
    6. 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.
    7. De Hoop,Jacobus Joost & Friedman,Jed & Kandpal,Eeshani & Rosati,Furio Camillo, 2017. "Child schooling and child work in the presence of a partial education subsidy," Policy Research Working Paper Series 8182, The World Bank.
    8. 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.

    More about this item

    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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