Does Child Sponsorship Pay Off in Adulthood? An International Study of Impacts on Income and Wealth

38 Pages Posted: 20 Apr 2016

See all articles by Bruce Wydick

Bruce Wydick

University of San Francisco - Department of Economics

Paul Glewwe

University of Minnesota - College of Agricultural, Food and Environmental Sciences - Department of Applied Economics

Laine Rutledge

University of Washington - Department of Economics

Date Written: February 10, 2016

Abstract

This research estimates the impact of international child sponsorship on adult income and wealth of formerly sponsored children using data on 10,144 individuals in six countries. To identify causal effects, an age-eligibility rule followed from 1980 to 1992 is utilized that limited sponsorship to children twelve years old or younger when the program was introduced in a village, allowing comparisons of sponsored children with older siblings who were slightly too old to be sponsored. Estimations indicate that international child sponsorship increased monthly income by $13?17 over an untreated baseline of $75, principally from inducing higher future labor market participation. Results show evidence for positive impacts on dwelling quality in adulthood and modest evidence of impacts on ownership of consumer durables in adulthood, limited to increased ownership of mobile phones. Finally, results point to modest effects of child sponsorship on childbearing in adulthood.

Keywords: Early Child and Children's Health, Nutrition, Children and Youth, Early Childhood Development, Reproductive Health

Suggested Citation

Wydick, Bruce and Glewwe, Paul and Rutledge, Laine, Does Child Sponsorship Pay Off in Adulthood? An International Study of Impacts on Income and Wealth (February 10, 2016). World Bank Policy Research Working Paper No. 7563, Available at SSRN: https://ssrn.com/abstract=2730968

Bruce Wydick (Contact Author)

University of San Francisco - Department of Economics ( email )

2130 Fulton Street
San Francisco, CA 94117-1080
United States

Paul Glewwe

University of Minnesota - College of Agricultural, Food and Environmental Sciences - Department of Applied Economics ( email )

1994 Buford Avenue
Room 231
St. Paul, MN 55108-1995
United States

Laine Rutledge

University of Washington - Department of Economics ( email )

Box 353330
Seattle, WA 98195-3330
United States

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