Child Schooling and Child Work in the Presence of a Partial Education Subsidy

76 Pages Posted: 7 Sep 2017

See all articles by Jacobus Joost De Hoop

Jacobus Joost De Hoop

United Nations Children’s Fund (UNICEF)

Jed Friedman

World Bank - Development Research Group (DECRG); World Bank Group

Eeshani Kandpal

World Bank

Furio C. Rosati

United Nations - UCW Program; University of Rome Tor Vergata - Faculty of Economics

Date Written: September 6, 2017

Abstract

Could a partial subsidy for child education increase children's participation in paid work? In contrast to much of the theoretical and empirical child labor literature, this paper shows that child work and school participation can be complements under certain conditions. Using data from the randomized evaluation of a conditional cash transfer program in the Philippines, the analysis finds that some children, who were in neither school nor work before the program, increased participation in school and work-for-pay after the program. Earlier cash transfer programs, notably those in Mexico, Brazil, and Ecuador, increased school attendance while reducing child labor. Those programs fully offset schooling costs, while the transfers under the Philippine transfers fall short of the full costs of schooling for a typical child. As a result, some beneficiary children from poor Philippine households increased work to support their schooling. The additional earnings from this work represent a substantive share of the shortfall in the schooling costs net of transfer. The paper rules out several potential alternative explanations for the increase in child labor, including changes in household productive activities, adult labor supply, and household expenditure patterns that, in principle, can arise after a cash transfer and may also affect the supply of or demand for child labor.

Keywords: Inequality, Educational Sciences, Social Protections & Assistance

Suggested Citation

De Hoop, Jacobus Joost and Friedman, Jed Arnold and Kandpal, Eeshani and Rosati, Furio C., Child Schooling and Child Work in the Presence of a Partial Education Subsidy (September 6, 2017). World Bank Policy Research Working Paper No. 8182. Available at SSRN: https://ssrn.com/abstract=3033332

Jacobus Joost De Hoop (Contact Author)

United Nations Children’s Fund (UNICEF) ( email )

New York City, NY
United States

Jed Arnold Friedman

World Bank - Development Research Group (DECRG)

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World Bank Group ( email )

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Eeshani Kandpal

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Furio C. Rosati

United Nations - UCW Program ( email )

ILO Office for Italy and San Marino
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Italy

HOME PAGE: http://www.ucw-project.org

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

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