The Impact of Wealth on the Amount and Quality of Child Labor

Del Carpio, Ximena V. ; Loayza, Norman V.

关键词: ACCESS TO SERVICES;    ACCOUNT;    ADVERSE EFFECTS;    ATTRITION;    BORROWING;   

DOI  :  10.1596/1813-9450-5959
RP-ID  :  WPS5959

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper analyzes to what extent, andunder what conditions, an increase in household wealthaffects the use of child labor in poor households. Itdevelops a simple theoretical model, which uses child labor,training, and schooling to maximize household income overtime, subject to resource constraints. Then, it conducts anempirical analysis using randomized trial data, which werecollected for the evaluation of the 2006 Nicaraguaconditional cash transfer program. This social programtransfers wealth to poor families in rural areas,conditional on children's school attendance and healthcheck-ups. In addition, for one third of the beneficiaries,there is a further wealth transfer to start anon-agricultural business. The paper finds that theconditional cash transfer program affected the volume andquality of child labor, reducing it in the aggregate andsteering it towards skill-forming activities. Specifically,the program appears to have reduced the use of child laborfor household chores and farm work, while increasing it forthe non-traditional, skill-forming activities related tocommerce and retail. Moreover, the paper finds that thesource behind the increase in skill-forming child labor isnot the basic component, which provides a transfer forpaying for schooling and health services, but it's thebusiness-grant component, which provides a household grantfor the creation of a micro business or a new economic activity.