Counting the uncounted: The consequences of children's domestic chores for health and education in Ethiopia

Much of the existing literature on the economics of child labor assumes that child labor is synonymous with employment in income‐generating activities. However, children also perform domestic chores, and excessive involvement in chores may be detrimental to their wellbeing. This paper investigates the effect on child health and education outcomes of participation in domestic chores as well as participation in income‐generating activities. Our data come from the 2014 Young Lives survey of Ethiopia. We use the guidelines of the 18th International Conference of Labor Statisticians and the United Nations Children's Fund to make a distinction between light work and harmful work, and apply this distinction to both domestic chores and income‐generating work. Using an instrumental variables approach, we find that involvement in harmful domestic chores is strongly associated with poor health and education outcomes. Our findings suggest that excessive involvement in domestic chores constitutes a form of child labor. Ignoring domestic chores will lead to an underestimate of the prevalence of child labor, especially among girls, whose exposure to chores is much higher, on average, than that of boys.     

Explaining variation in child labor statistics

Child labor statistics are critical for assessing the extent and nature of child labor activities in developing countries. In practice, widespread variation exists in how child labor is measured. Questionnaire modules vary across countries and within countries over time along several dimensions, including respondent type and the structure of the questionnaire. Little is known about the effect of these differences on child labor statistics. This paper presents the results from a randomized survey experiment in Tanzania focusing on two survey design choices: different questionnaire design to classify children work and proxy response versus self-reporting. Use of a short module compared with a more detailed questionnaire has a statistically significant effect, especially on child labor force participation rates, and, to a lesser extent, on working hours. Proxy reports do not differ significantly from a child's self-report. Further analysis demonstrates that survey design choices affect the coefficient estimates of some determinants of child labor in a child labor supply equation. The results suggest that low-cost changes to questionnaire design will potentially clarify the concept of work for respondents.     

Health status and labor force participation: evidence for urban low and middle income individuals in Colombia

This paper analyzes the relationship between individual health status and labor force participation using the first wave of the Colombian Longitudinal Survey. The empirical modeling strategy accounts for the presence of potential endogeneity between these two variables. The results show that there is a positive relationship between health and labor force participation in both directions, indicating that better health is likely to lead to a higher probability of participation in the labor market, but also that individuals who participate in the labor market are more likely to report better health. Interesting differences are uncovered when comparing the results by gender and/or age groups. For instance, for younger females, health status and higher education positively affect the probability of labor participation, whereas having children under the age of 5 and being married reduce their probability of participation. Our findings also highlight the importance of public policy to guarantee good health conditions of the population which could also have a positive impact on labor productivity and consequently on long-run economic growth.     

Child labor,urban proximity,and household composition

Using detailed survey data from Nepal, this paper examines the determinants of child labor with a special emphasis on urban proximity. We find that children residing in or near urban centers attend school more and work less in total but are more likely to be involved in wage work or in a small business. The larger the urban center, the stronger the effect is. Urban proximity is found to reduce the workload of children and improve school attendance up to 3 h of travel time from the city. In areas of commercialized agriculture located 3 to 7 h from the city, children do more farm work. Urban proximity effects are accounted for by a combination of local labor supply and demand conditions, most notably the local importance of agriculture, the education level of the parents, and the local wage rate. Child servants, which represent a small proportion of all children, work much harder than other children and appear particularly at risk.     

Conditional cash transfers tools to combat child labor: Evidence from a randomized controlled trial in Costa Rica

The Government of Costa Rica collaborated with a research team to conduct a randomized controlled trial of their Working Children and Adolescents program. The program provided working youth with a monthly cash transfer with the conditions that they attend school regularly and complete their grade. This study examines the effect of the cash transfer on (1) child labor and hazardous child labor participation as well as hours worked; (2) school enrollment, attendance, and completion; and (3) self-reported health. The main findings provide evidence of a statistically significant reduction of more than 4 hours worked per week by children. The findings also suggest null effects on labor participation and school outcomes. Cost-effectiveness analysis shows that the program demonstrates a transfer effectiveness and cost-effectiveness comparable to similar interventions in Latin American countries. The subsidy alone does not seem enough to improve schooling outcomes, justifying the necessity of additional education policies to complement the cash transfer program.     

Foreign Direct Investment and Domestic Child Labor

Empirical evidence suggests that use of child labor as domestic help has increased significantly in recent years although the overall incidence of child labor across the globe has declined satisfactorily. This should draw the attention of economists and policymakers because domestic child labor is considered as exploitative and in many cases hazardous. This paper purports to explain this apparently perplexing finding theoretically in terms of a three‐sector general equilibrium model with a nontraded sector where only child labor is used to render services to the richer section of the society. The analysis shows how FDI‐led economic growth increases the size of the services sector although it lowers the overall incidence of child labor in the economy and improves the welfare of the poor families that supply child labor. Finally, a composite policy has been recommended that can deal with all three aspects favorably.     

The impact of targeting policy on spouses’ demand for public goods,labor supplies and sharing rule

This paper studies the impact of targeted unconditional cash transfers on the spouses’ demand for public goods, labor supplies and sharing of resources. We estimate a collective labor supply model with distributional factors which is extended to include preferences over marketable public goods (including child goods). In this way, unlike previous research, we consider the impact of such transfers on the intrahousehold allocation of resources and distinguish between the labeling and recipient effects. We exploit the UK experience and find evidence in favor of the collective model with separable preferences over labor supplies and public goods. This finding implies a recipient effect and not a labeling effect of child benefits. Given the household’s unearned income, the bigger the wife’s bargaining power, the more the resources allocated to public goods (including child goods) and the wife’s private consumption. The results can be useful in the design of family policy which aims to improve the relative welfare of children within the family and alleviate any intrahousehold consumption inequalities.     

The effect of the timing and spacing of births on the level of labor market involvement of married women

We analyze the effect of the timing and spacing of births on the labor supply of married women in a framework that accounts for the endogeneity of the labor market and fertility decisions, for the heterogeneity of the effects of children on labor supply and their correlation with the fertility decisions, and for the correlation of sequential labor market decisions. Delaying the first birth leads to higher pre-natal levels of labor market involvement and reduces the negative effect of the first child on labor supply. The effect of the second child increases with the spacing of the two births as women, returning to work after the first birth, finance child care time increasingly through reductions in market time. Individual heterogeneity is considerable; women with lower propensity for children have the first birth later in life and space subsequent births more closely together, work more before the birth of the first child, but face larger effects of children on their labor supply.     

Child participation,nature of work,and fertility demand: a theoretical analysis

A model of utility maximization with home production of children and standard of living is used to analyze the fertility behavior of a subsistence farming household in an agricultural lesser developed country. Assuming children as both consumer and producer goods, and assuming a prestige cost of their participation in labor force, the author derived alternative levels of fertility demand. The following different conditions of child participation were identified depending upon the size of the prestige cost and the resultant net gain from child work: (1) participation in wage-labor, if marginal child income from the family farm is less than marginal wage income; (2) participation in family farm works only, if the larger wage income is neutralized by a higher prestige cost, implying a lower child contribution; (3) participation in family farm works only, if its marginal child income is greater than wage income, thus providing the largest child contribution; and (4) no participation in labor force at all, implied by a very high prestige cost and resulting in no child contribution. The household demands a larger number of children under conditions (1) and (3) than under conditions (2) and (4). The results are then used to draw inferences regarding fertility behavior across different landholding households. It appears that landholding reduces fertility initially, increases it at the intermediate levels, and then decreases it when the household becomes a non-cultivating rental income earner. The nonmonotonic landholding-fertility relationship explains the contradictory empirical evidence which exists in the literature while also suggesting important implications for fertility regulation policy.     

Child fostering in Africa: When labor and schooling motives may coexist

The paper proposes a theoretical framework for understanding purposive child fostering in Africa, whereby a non-orphaned child is sent to live temporarily with relatives. In the model, adults decide whether to foster in or out a child in conjunction with other household choices, e.g. own time allocation between market and non-market activities, children's amount of work, and schooling. By allowing for positive externalities from fostering, and thus asymmetric motives for fostering in (labor) and out (human capital), the proposed framework predicts that school-age children are sent to better-off households and that some families may foster in and out simultaneously. The model identifies the conditions under which all actors involved, children included, may benefit from fostering arrangements, but also points to situations where fostering may become an opportunity to marginalize a subset of children. The paper aims to provide a sound theoretical foundation that sheds light on why there exists mixed empirical evidence on the effects of fostering on children's well being, and cautions against demonizing non-parent residence as unequivocally detrimental to children.     

Exploring the spatial determinants of children’s activities: evidence from India

This article investigates the choice of children’s activities in India and provides recommendations for areas where policy intervention to promote schooling and combat child labor would be most successful. First, we recognize that child schooling and labor are not the sole activities that children can engage in and include idleness as one of the choices. Second, we use a hierarchical model with spatially correlated random effects to analyze the determinants of the choice of children’s activities. Lastly, we recommend that pro-schooling intervention be implemented in districts with favorable attitudes toward schooling and unfavorable attitudes toward idleness, while anti-child-labor interventions be implemented in districts where attitudes toward child labor are less favorable. We thus identify two groups of Indian districts to target appropriate government interventions.     

Occupational choices of working children in Bangladesh

The article looks into the determinants of occupational choices of working children in Bangladesh. Using data from 6668 Bangladeshi working children aged 5 through 14, the article estimates several binary and multinomial logit regressions, separately for boys and girls. The article confirms that most children work in the informal sector where formal sector’s jurisdiction and regulations are absent. Specifically, the article finds that children are least likely to work in the service occupation and are more likely to work in the textile sector. The findings highlight the diversity in the occupational distribution of child workers by gender and show how their individual and family characteristics influence occupational choices. The service sector, which comprises of mostly maids, is a hidden sector. This sector makes children vulnerable to abuse. Thus, it is suggested that policy makers need to come up with effective legislations that would protect the children who work in the ‘hidden informal’ sector.     

The effect of family welfare support on the likelihood of having another child and parents’ labor supply

Governments have recently attempted to reverse the below-replacement fertility rates in Europe by reducing child-rearing costs through child benefits, grants and paid leaves. This article examines the causal effect of family allowances on the likelihood of having another child, and on the extensive and intensive margins of labor supply. Evidence from Switzerland suggests that higher child benefits incentivize parents to have more children but do not affect their employment choice. The effect is larger for low-income families. These findings imply that policies aimed at improving the economic well-being of families are likely to increase fertility rates without distorting labor market outcomes.     

Occupational,Marital, and Life-Cycle Determinants of Women's Labor Force Participation in Mid Nineteenth-Century Rural France

Abstract

The French population census of 1851 is unique among France's nineteenth- and early twentieth-century censuses, as it is the only census to provide information on the market-oriented work of women and children within and outside the home. This study utilizes that information to analyze the demographic, structural, and economic determinants of women's labor force participation in a sample of rural communes in northern France. The data reveal an industrious population in which two-thirds to three-quarters of women in farm families engaged in market-oriented work. The data suggest that women were pushed rather than pulled into the rural labor force, and that poverty was the primary factor driving rural women's participation. The census data throw statistical light on the labor market participation rates of women and children in a preindustrial setting and are likely to produce major revisions in understandings of productivity growth in late nineteenth- and early twentieth-century France.     

Mortality risks,education and child labor

In this paper, we investigate the role of young adult mortality on child labor and educational decisions. We argue that mortality risks are a major source of risks in returns to education in developing countries. We show that, in the absence of appropriate insurance mechanisms, the level of child labor is inefficient, but it can be too high or too low. It is too high when parents are not very altruistic and anticipate positive transfers from their children in the future. Uncertain returns to education, endogenous mortality or imperfect capital markets unambiguously increase child labor. When the level of child labor is inefficiently high, we also show that a cash transfer conditional on child's schooling can always restore efficiency regarding child labor.     

Exploitation of Child Labor and the Dynamics of Debt Bondage

This paper is concerned with the institution of debt bondage and child labor employment in the context of an agrarian economy with overlapping generations. The model explores the principal-agent interaction between landlords and tenants, and identifies a set of reasons why households put children to work in response to the need to service outstanding debts, only to realize that child labor work is exploited, and households are made strictly worse off in general equilibrium. Debt bondage in one generation is further shown to leave spillover effects, and contribute to the cycle of debt, bonded child labor and poverty across generations. In this context, the effectiveness of trade sanctions as a policy response to bonded child labor is evaluated. Contrary to expectations, a trade ban can set off a sequence of increasing indebtedness among agrarian households that offset the intended (static) disincentives to employ child labor.     

Trade Sanctions and the Incidence of Child Labor

The purpose of this paper is to develop an imperfect competition model of a small open developing country to analyze the effects of trade sanctions on the incidence of child labor. We show that a uniform tariff levied by the developed countries on imports produced with the help of child labor is a failure in terms of reducing child labor. A more effective course of action would be a firm‐specific tariff where the tariff rate varies with the amount of child labor incorporated in a single good. While such an instrument reduces child labor, however, it worsens the children’s well‐being due to lower income and consumption. Contrary to expectations, the entrepreneurs in the developing countries, supposedly the main beneficiaries of child labor, are better off under trade sanctions as they realize higher profits.     

Raising juveniles

This paper investigates how families decide how juveniles use their time. The problem is analyzed in three variations: (i) a ‘decentralized’ scheme, in which parents control the main budget, but their children dispose of their time as they see fit, together with any earnings from work on their own account; (ii) ‘hierarchy’, in which parents can enforce, at some cost, particular levels of schooling and supervised work contributing to the main budget; and (iii) the cooperative solution, in which resources are pooled and the threat point is one of the non-cooperative outcomes. Adults choose which game is played. While the subgame perfect equilibrium of the overall game is pareto-efficient, it may yield less education than ‘hierarchy’. Restrictions on child labor and compulsory schooling generally affect both the threat point and the feasible set of bargaining outcomes. Families may choose more schooling than the legal minimum.     

Labor market reform and incidence of child labor in a developing economy

The paper is purported to examine the consequences of possible labor market reform in the developing economies on the incidence of child labor and economic well-being of the child labor supplying families. A two-sector, full-employment general equilibrium structure with child labor and imperfection in the market for adult labor has been used for the analytical purpose. Although this policy is likely to lower the incidence of child labor the welfare of the families supplying child labor worsens. The paper, therefore, questions the desirability of a policy designed at mitigating the child labor problem especially when it makes the poor families worse off.     

Microfinance and child mortality

Microfinance institutions (MFIs) offer targeted opportunities for the poor to generate additional income with a range of financial services including credit, insurance, savings accounts and money transfers. Aside from reducing poverty, microfinance can potentially improve health because it is the poor who are usually more constrained from health investments due to limited budgets. Furthermore, microfinancing specifically targets women, who are more likely to spend additional income on children’s well-being. Finally, several MFIs have also begun to offer health-related services, such as health education, health-care financing, clinical care, training community health workers, health micro-insurance and linkages to public and private health providers. Using a new data set, this article conducts the first multi-country study of the effect of microfinance on child mortality, the health outcome, which is most sensitive to the effects of absolute deprivation. Our findings confirm that an increase in the proportion of MFI clients in a country is significantly associated with lower under-five and infant mortality rates. We conclude that if MFIs’ educational and health services have indeed caused improvements in health outcomes at the community level, then it may be important for governments to complement these activities with similar campaigns, particularly in remote areas where MFI penetration is low.