Cash Transfers and Child Labor

46 Pages Posted: 20 Apr 2016

See all articles by Jacobus de Hoop

Jacobus de Hoop

University of Rome Tor Vergata

Furio C. Rosati

University of Rome Tor Vergata - Faculty of Economics

Date Written: March 1, 2014


Cash transfer programs are widely used in settings where child labor is prevalent. Although many of these programs are explicitly implemented to improve children's welfare, in theory their impact on child labor is undetermined. This paper systematically reviews the empirical evidence on the impact of cash transfers, conditional and unconditional, on child labor. The authors find no evidence that cash transfer interventions increase child labor in practice. On the contrary, there is broad evidence that conditional and unconditional cash transfers lower both children's participation in child labor and hours worked and cushion the effect of economic shocks that may lead households to use child labor as a coping strategy. Boys experience particularly strong decreases in economic activities, girls in household chores. The findings underline the usefulness of cash transfers as a relatively safe policy instrument to improve child welfare, but also point to knowledge gaps, for instance regarding the interplay between cash transfers and other interventions, that should be addressed in future evaluations to provide detailed policy advice.

Keywords: Street Children, Labor Policies, Youth and Governance, Children and Youth, Debt Markets

Suggested Citation

de Hoop, Jacobus and Rosati, Furio C., Cash Transfers and Child Labor (March 1, 2014). World Bank Policy Research Working Paper No. 6826, Available at SSRN:

Jacobus De Hoop (Contact Author)

University of Rome Tor Vergata

Via di Tor Vergata
Rome, Lazio 00133

Furio C. Rosati

University of Rome Tor Vergata - Faculty of Economics ( email )

Via Columbia n.2
Rome, rome 00100
6 2020 500 (Fax)

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