Examining Child Labor and Parental Altruism from the Rural-Urban Divide: Extending the Inverted-U Empirics

NESRA - WP 17/003

17 Pages Posted: 24 Apr 2017

See all articles by Isaac Koomson

Isaac Koomson

University of New England (Australia) - UNE Business School

Date Written: April 21, 2017

Abstract

Extending the current empirical discourse on the inverted-U to cover non-farm households, this paper replaces the land size (proxy for wealth) with a fully-composed household income from the GLSS6 data that incorporates the value of land and five other components as income. After choosing the ZIP model over the PRM, based on the corrected versions of the Vuong test, the findings supported the inverted-U relationship between household income and child labour. This implies that, at lower levels of income, parents are non-altruistic, using more child labourers with increases in income but become altruistic towards their children at income levels beyond GH₵11,656.2760 ($5,834.26) for all households; GH₵11,308.3877 ($5,660.14) and GH₵22,026.4658 ($11,024.81) for the rural and urban households respectively. The analysis showed that rural-located parents become altruistic at relatively lower levels of income compared to their urban counterparts. Policy should aim at increasing the average income of households.

Keywords: wealth paradox, child labour, altruism, rural, urban

JEL Classification: D10, I21, J21, J23, J43, Q12

Suggested Citation

Koomson, Isaac, Examining Child Labor and Parental Altruism from the Rural-Urban Divide: Extending the Inverted-U Empirics (April 21, 2017). NESRA - WP 17/003, Available at SSRN: https://ssrn.com/abstract=2956201 or http://dx.doi.org/10.2139/ssrn.2956201

Isaac Koomson (Contact Author)

University of New England (Australia) - UNE Business School ( email )

Armidale, NSW 2351
Australia

HOME PAGE: http://https://www.une.edu.au/

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