The Effect of Food Price Changes on Child Labour: Evidence from Uganda

Most people in developing countries spend up to 60 per cent of their income on food, even though the majority of them are farmers. Hence, a change in food prices affects both their revenue as well as expenditure, and it may thereby affect their labour market decisions. Using the Uganda National Panel Survey and monthly regional food prices, this paper examines the effect of changes in food prices on child labour. The empirical evidence shows that an increase in food prices is linked to an increase in the probability and the intensity of child labour. We find the effect of food price increases to be smaller among landowning households, which is consistent with the view that landowning households can better compensate for price shocks. The empirical results suggest that periodic shocks in food prices may have longer lasting effects on economic development in developing countries through the channel of child labour.     

In the Same Boat,but not Equals: The Heterogeneous Effects of Parental Income on Child Labour

This paper examines the impact of parental income on child labour. The empirical literature has found conflicting results regarding whether poverty leads parents to send their children to work. Most of this literature, however, treats child labourers as a single homogeneous group, ignoring differences among working children in work intensity, hazard exposure, and type of employer. This paper argues that accounting for the heterogeneity in child’s working conditions may explain the conflicting results in the literature. Specifically, the existence of this heterogeneity may reflect heterogeneity in parents’ perceptions about the returns to child’s work, and hence in parental reasons to send their children to work. To test this hypothesis, I estimate the effects of parental income on child labour for various working conditions, using data from the 2010 Egypt National Child Labour Survey. This dataset provides rich information on the working conditions of child labourers. The findings show that the effect of parental income on child labour is minimal among children who work in non-hazardous jobs, jobs that are not highly physical, or in family businesses. In contrast, higher parental income does decrease the likelihood of child labour in market work, jobs that are physical and hazardous jobs.     

The determinants of teenage schooling in Jamaica: Rich vs. poor,females vs. males

The belief that schooling is an important way to reduce poverty and increase social mobility has lead to large government‐sponsored investment in education in developing countries. Jamaica has an impressive literacy and primary enrolment rate, yet the ability of its secondary school system to enhance social mobility and reduce inequality is limited. Regression results from a nationally representative household survey show that family background variables (parental education and income) are important determinants of secondary school enrolment, and income is the single most important determinant of enrolment in an ‘elite’ high school, with the impact being twice as large for females. Part of the income effect is shown to represent unobserved community heterogeneity. One conclusion is that the recent ‘cost‐sharing’ education policy of the Jamaican government, if applied selectively to the elite academic high schools, will fall disproportionately upon rich households.     

Effects of a Sibship Extension to Foster Children on Children's School Enrolment: A Sibling Rivalry Analysis for Indonesia

In this paper, we question whether and how the sibship extension to foster children, a common practice in many developing countries, affects children's school enrolment status. Based on Indonesian data, we show that children's school enrolment increases with the number of foster grandchildren in their sibship. Given that grandchildren fostering is associated with positive transfers from biological to host parents, this result reflects either a release of liquidity constraints in the host household or the uncommon preferences of host grandparents. Conversely, the proportion of other foster children in a sibship does not have any effect. The latter result's explanation depends on the reason children other than grandchildren are fostered.     

Wealth Inequality,Educational Environment and School Enrolment: Evidence from Mexico

Using data from the extended section of the 2010 Mexican census (2.9 million households), we study how school enrolment is associated with wealth inequality and with the educational environment the child is exposed to at the household and municipal levels. We provide robust evidence of wealth inequality as a negative predictor of school enrolment for children in primary, secondary and high school age ranges while a positive role is played by the educational environment. Through the introduction of interaction terms, we account for how economic and educational variables are intertwined at both the household and the municipal level, and we are able to illustrate the considerable heterogeneity in the role of adult education for households at different standards of living.     

The Impact of School Meals on School Participation: Evidence from Rural India

This article assesses the effect of transition from monthly distribution of free food grains to the daily provision of free cooked meals to school children on enrolments and attendance in a rural area of India. School panel data allow a difference-in-differences estimation strategy to address possible endogeneity of programme placement. The results suggest that programme transition had a significant impact on improving the daily participation rates of children in lower grades. The average monthly attendance rate of girls in grade one was more than 12 percentage points higher while there was a positive but insignificant effect on grade one boys' attendance rate. The impact on enrolment levels was insignificant.     

Child Labour in Indonesian Small Industries

We analyse the geographic incidence of child labour in small manufacturing firms in Indonesia at the village level. Our unique data set covers virtually all Indonesian villages and urban neighbourhoods; it allows us to distinguish between demand and supply side determinants of child labour. We show by correcting for sample selection that a number of counterintuitive results – child labour being unaffected by credit access and school proximity – are the result of an interplay between supply and demand side determinants. Credit access and school proximity reduce child labour supply, but simultaneously constitute positive location factors for firms thereby increasing the demand for child labourers. To effectively reduce child labour, growth oriented policies, such as enhancing school and credit facilities, should be complemented by policies specifically geared towards increasing school attendance.     

Child Income Appropriations as a Disease-Coping Mechanism: Consequences for the Health-Education Relationship

This paper analyses the relationships between HIV/AIDS and education taking into account the appropriative nature of child income. Using a theoretical model, we show that considering remittances from one’s child as an insurance asset can reverse the usual negative relationship between disease prevalence and educational investment. This prediction confirms the results of an empirical study conducted on data compiled from the Demographic and Health Survey (DHS) database for 12 sub-Sahara African countries for children aged between 7 and 22-years-old. Using regional HIV prevalence as a measure of health risk, we find that the ‘sign of the slope’ between health risk and the enrolment of children is not constant. Splitting the data based on expected remittance patterns (for example rural versus urban), we obtain that the effect is most likely driven by household characteristics related to child income appropriation.     

Schooling Costs and Child Work in Rural Pakistan

A conventional argument in the child–labour debate is that improvements in access to schools are an effective way to reduce the labour force participation of children. It is argued that schooling competes with economic activity in the use of children's time, and enhanced access to schools, interpretable as reduction in schooling costs, may raise school attendance at the expense of child labour. In this article, we draw a distinction between child labour within the household (intra-household) and child work in the labour market (extra-household), and examine the separate effects of schooling costs upon these two types of child labour in rural Pakistan. Consistent, at least in part, with our theoretical framework, we find that extra-household child labour and schooling costs are positively related whereas intra-household child labour is insensitive to changes in the costs of schooling. Our results suggest that reduction in schooling costs will have limited success in the abatement of child labour in rural Pakistan.     

Impact of Shocks on Labour and Schooling Outcomes and the Role of Public Work Programmes in Rural India

The effectiveness of the National Rural Employment Guarantee Scheme (NREGS) on rural labour market dynamics in India has been widely debated in the literature. However, the impact of the NREGS on non-agricultural labour market and children schooling outcomes in reference to exogenous rainfall shock is unclear from the existing literature. This paper exploits the Indian National Sample Survey and rainfall measures from the precipitation archive of the University of Delaware to investigate the role of the NREGS in the labour market and schooling outcomes of children during shocks. Using a difference-in-differences methodology, we focus on disaggregated shock specification and find a shock-cushioning pattern for the NREGS during negative shocks. However, there is an excess demand for labour during positive shock periods resulting from exposure to the NREGS. The implication is that the excess informal labour market opportunity translates to a reduction in school engagement for children. These findings summarily distinguish the role of the NREGS during positive and negative shocks respectively.     

The impact of household income on child labour in urban Turkey

Abstract

The aim of this study is to investigate the determinants of child labour in urban Turkey with a special reference to low household income or poverty as one of its root causes. Studies done elsewhere have produced mixed results which necessitate the relationship to be studied at country-level. The data from urban Turkey indicate that children from poorer families stand at a higher risk of employment. This finding is confirmed using various measures of household material well-being. Simulation results have further pointed out that current interventions are not likely to produce a sizeable impact on the child labour problem.     

Gone with the Storm: Rainfall Shocks and Household Wellbeing in Guatemala

This paper identifies the negative consequences of the strongest tropical storm ever to strike Guatemala on household welfare. Per capita consumption fell in urban areas, raising poverty substantially. Households cut back on food consumption and basic durables, and attempted to cope by increasing their adult and child labour supply. The mechanisms at play include the intensity of the shock, food prices and the timing of Agatha with respect to local harvest cycles. The results are robust to placebo treatments, migration and measurement error, and partly explain the increase in poverty in the country previously attributed solely to the collateral effects of the global financial crisis.     

Regional Returns to Education,Child Labour and Schooling in India

We offer evidence from India that higher regional returns to primary education not only increase the likelihood that boys and girls attend school but also decrease the likelihood that they work. These relationships hold only for the top three quintiles of the income distribution and mostly for children in the age group 10–14 years. The former result suggests that liquidity constraints may not allow poorer households to respond to the economic benefits of education. Policies that raise the economic benefits of education may increase human capital investments in households that do not rely on their children's incomes for survival. However, low schooling and high child labour will persist among credit constrained families unless these households are provided with the economic ability to respond to these benefits.     

Egypt's multiproduct agricultural technology and agricultural policy

Based on the hypothesis that Egyptian farmers maximise economic profits, the multiproduct translog profit function is used to estimate input demand and output supply functions for corn, rice, and cotton crops grown in Egypt's Nile delta. Elasticity estimates indicate a generally high degree of price responsiveness. The estimates are used to evaluate Egyptian agricultural policies concerning labour, mechanisation, and output prices. The results show that Egypt's agricultural policies of taxing output and subsidising certain inputs have hada substantial negative impact on agricultural productivity.     

Evidence on substitutability of adult and child labour

Whether child labour displaces adult labour, giving rise to unemployment, is a matter of their substitutability in production. Using a flexible form production function fitted to data on Egypt's economy, we generate Hicks elasticities of complementarity, own and cross‐price elasticities, as well as simulate employment effects on adult labour as a result of changing the fixed quantity of labour in compliance with the international call to end child labour. Adult males appear to be complementary with, and adult females substitutes for child labour, although the employment effects of banning child labour are inconclusive.     

Long-term Impacts of Global Food Crisis on Production Decisions: Evidence from Farm Investments in Indonesia

This paper estimates farmers’ investment response to food price spikes using household panel data collected before and after the 2007/08 food price crisis in Indonesia. We found that an increase in farmers’ terms-of-trade allowed relatively large crop-producing farmers to increase their investments at both extensive and intensive margins. Food price spikes had a significant income effect among farmers whose production surplus is large for market sales. During the food price crisis, large farmers particularly increased machine investments, which saved some labour inputs, pointing to the importance of complementarities between land and machine investments.     

Does Health Insurance Reduce Child Labour and Education Gaps? Evidence from Rwanda

A common practice of poor households to informally deal with risk is to allocate children’s time away from school towards income-generating activities or household production. Focussing on Rwanda, this study investigates whether the provision of formal health insurance helps to prevent this undesired risk coping strategy. We find that children of households enrolled in health insurance work significantly less compared to those of not enrolled families, and also have better educational achievements. The results suggest that policy interventions which reduce household risk exposure may have additional benefits in terms of lower child labour supply and higher schooling levels.     

A Little Help May Be No Help at All: Size of Scholarships and Child Labour in Nepal

In the empirical literature on child labour and income transfer programmes, evidence has been lacking on whether (and how) the size of transfer influences the impact on child labour. This paper finds significant size effects in the impact of scholarship-based transfers on child labour in Nepal. High-value scholarships decrease 8–16 year-old girls’ total work hours by one-third, largely reducing their hours in paid and unpaid economic activities with little impact on domestic chores. Low-value scholarships have no impact at all. The findings elucidate the scope for calibrating transfer size to achieve greater child labour impacts in developing countries.     

If you build it,will they come? School availability and school enrolment in 21 poor countries

Increasing the supply of schools is commonly advocated as a policy to promote schooling outputs and outcomes. Analysis of the relationship between the school enrolment of 6- to 14-year-olds and the distance to primary and secondary schools in 21 rural areas of low-income countries (including some of the poorest countries in Sub-Saharan Africa) suggests that the two are often statistically significantly related. However, the magnitudes of the associations are small: simulating large reductions in distance yields only small increases in average school participation, and only small reductions in within country inequality. There are a number of reasons why this result might hold. Average effects might mask heterogeneity in the impact by initial distance to the nearest school, as well as by economic status; the existing quality of schools might be low and the simulation assumes that this would be the average quality of new schools; and the cross-sectional nature of the data make it hard to rule out that schools might be placed where they are ‘most needed’ which would bias the results towards zero. Sensitivity analysis suggests none of these drive the result: the results suggest that expectations for large overall increases in enrolment as a result of school construction should be tempered. They also suggest areas for more research to guide policy: in particular on the interaction between school quantity and quality; the potential importance of demand side subsidies; and the cost effectiveness of different approaches.     

Education,Employment and Earnings of Secondary School and University Leavers in Tanzania: Evidence from a Tracer Study

This study uses a tracer survey of secondary school completers in Tanzania to analyse the impact of educational qualifications on labour market earnings. We show that the rates of return to the highest educational qualifications for wage employees are not negligible and, at the margin, provide an investment incentive. However, we find little evidence of human capital effects in the earnings determination process for the self-employment sector. Introducing controls for father's educational background and a set of school fixed effects designed to proxy for school quality and potential labour market network effects reduces the estimated rates of return to educational qualifications. A comparison of our results with the available evidence from other countries in the region suggest that, despite an extremely small secondary and university education system, the private rates of return to education in the Tanzanian wage employment sector are comparatively low.