Does Child Labor Always Decrease with Income? An Evaluation in the Context of a Development Program in Nicaragua

This paper investigates the relationship of household income with child labor. The analysis uses a rich dataset obtained in the context of a conditional cash transfer program in a poor region of Nicaragua in 2005 and 2006. The program has a strong...

Full description

Bibliographic Details
Main Author:	Del Carpio, Ximena V.
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCOUNT AGE GROUP AGE GROUPS ATTRITION CAPITAL INVESTMENTS CAPITAL MARKETS CHILD EDUCATION CHILD LABOR CHILD LABOR DECLINE CHILD LABOR DECLINES CHILD WORK COBB-DOUGLAS PRODUCTION FUNCTION CREATING OPPORTUNITIES DEVELOPMENT ECONOMICS EARNING ECONOMIC GROWTH ECONOMIC SHOCKS ECONOMICS EMPLOYMENT FAMILY MEMBER FAMILY MEMBERS FORMAL EDUCATION FUTURE LABOR HOUSEHOLD CONSUMPTION HOUSEHOLD ENTERPRISES HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD WEALTH HUMAN CAPITAL INCOME INCOME DISTRIBUTION INFORMAL EMPLOYMENT INVENTORY INVESTIGATION LABOR COSTS LABOR INTENSITY LABOR MARKET LABOR MARKETS LABOR OFFICE LABOR SHORTAGES LABORERS LABOUR MERCHANTS MORAL HAZARD OLDER CHILDREN OLDER GIRLS ON-THE-JOB TRAINING OPPORTUNITY COSTS PARENTS POLITICAL ECONOMY PREVIOUS SECTION PREVIOUS STUDIES PREVIOUS WORK PRIMARY EDUCATION PRIMARY SCHOOL PRODUCTIVE ACTIVITIES PRODUCTIVE ACTIVITY RURAL POVERTY SCHOOL ATTENDANCE SERVICE PROVIDERS SOCIAL PROTECTION TRAINING COMPONENT TRAINING COURSE TRAINING PROGRAM UNSKILLED LABOR VOCATIONAL COURSES VOCATIONAL TRAINING WAGES WORK ACTIVITIES WORK EXPERIENCE WORKING CHILDREN YOUNG ADULTS YOUNG BOYS YOUNG CHILDREN YOUNG GIRLS YOUNGER CHILDREN
Online Access:	http://documents.worldbank.org/curated/en/2008/08/9778582/child-labor-always-decrease-income-evaluation-context-development-program-nicaragua http://hdl.handle.net/10986/6792

id	okr-10986-6792
recordtype	oai_dc
spelling	okr-10986-67922021-04-23T14:02:32Z Does Child Labor Always Decrease with Income? An Evaluation in the Context of a Development Program in Nicaragua Del Carpio, Ximena V. ACCOUNT AGE GROUP AGE GROUPS ATTRITION CAPITAL INVESTMENTS CAPITAL MARKETS CHILD EDUCATION CHILD LABOR CHILD LABOR DECLINE CHILD LABOR DECLINES CHILD WORK COBB-DOUGLAS PRODUCTION FUNCTION CREATING OPPORTUNITIES DEVELOPMENT ECONOMICS EARNING ECONOMIC GROWTH ECONOMIC SHOCKS ECONOMICS EMPLOYMENT FAMILY MEMBER FAMILY MEMBERS FORMAL EDUCATION FUTURE LABOR HOUSEHOLD CONSUMPTION HOUSEHOLD ENTERPRISES HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD WEALTH HUMAN CAPITAL INCOME INCOME DISTRIBUTION INFORMAL EMPLOYMENT INVENTORY INVESTIGATION LABOR COSTS LABOR INTENSITY LABOR MARKET LABOR MARKETS LABOR OFFICE LABOR SHORTAGES LABORERS LABOUR MERCHANTS MORAL HAZARD OLDER CHILDREN OLDER GIRLS ON-THE-JOB TRAINING OPPORTUNITY COSTS PARENTS POLITICAL ECONOMY PREVIOUS SECTION PREVIOUS STUDIES PREVIOUS WORK PRIMARY EDUCATION PRIMARY SCHOOL PRODUCTIVE ACTIVITIES PRODUCTIVE ACTIVITY RURAL POVERTY SCHOOL ATTENDANCE SERVICE PROVIDERS SOCIAL PROTECTION TRAINING COMPONENT TRAINING COURSE TRAINING PROGRAM UNSKILLED LABOR VOCATIONAL COURSES VOCATIONAL TRAINING WAGES WORK ACTIVITIES WORK EXPERIENCE WORKING CHILDREN YOUNG ADULTS YOUNG BOYS YOUNG CHILDREN YOUNG GIRLS YOUNGER CHILDREN This paper investigates the relationship of household income with child labor. The analysis uses a rich dataset obtained in the context of a conditional cash transfer program in a poor region of Nicaragua in 2005 and 2006. The program has a strong productive emphasis and seeks to diversify the work portfolio of beneficiaries while imposing conditionalities on the household. The author develops a simple model that relates child labor to household income, preferences, and production technology. It turns out that child labor does not always decrease with income; the relationship is complex and exhibits an inverted-U shape. Applying the data to the model confirms that the relationship is concave when all children (8-15 years of age) are included in the sample. Expanding the analysis by stratifying the sample by age and gender shows that the relationship holds only for older children, both genders. The author investigates the effect of the conditional cash transfer program on child labor. The results show that the program has a decreasing effect on total hours of work for the full sample of children. Disentangling labor into two types - physically demanding labor and non-physical labor - reveals that the program has opposite effects on each type; it decreases physically demanding labor while increasing participation in non-physical (more intellectually oriented) tasks for children. 2012-05-31T20:05:41Z 2012-05-31T20:05:41Z 2008-08 http://documents.worldbank.org/curated/en/2008/08/9778582/child-labor-always-decrease-income-evaluation-context-development-program-nicaragua http://hdl.handle.net/10986/6792 English Policy Research Working Paper No. 4694 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Nicaragua
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCOUNT AGE GROUP AGE GROUPS ATTRITION CAPITAL INVESTMENTS CAPITAL MARKETS CHILD EDUCATION CHILD LABOR CHILD LABOR DECLINE CHILD LABOR DECLINES CHILD WORK COBB-DOUGLAS PRODUCTION FUNCTION CREATING OPPORTUNITIES DEVELOPMENT ECONOMICS EARNING ECONOMIC GROWTH ECONOMIC SHOCKS ECONOMICS EMPLOYMENT FAMILY MEMBER FAMILY MEMBERS FORMAL EDUCATION FUTURE LABOR HOUSEHOLD CONSUMPTION HOUSEHOLD ENTERPRISES HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD WEALTH HUMAN CAPITAL INCOME INCOME DISTRIBUTION INFORMAL EMPLOYMENT INVENTORY INVESTIGATION LABOR COSTS LABOR INTENSITY LABOR MARKET LABOR MARKETS LABOR OFFICE LABOR SHORTAGES LABORERS LABOUR MERCHANTS MORAL HAZARD OLDER CHILDREN OLDER GIRLS ON-THE-JOB TRAINING OPPORTUNITY COSTS PARENTS POLITICAL ECONOMY PREVIOUS SECTION PREVIOUS STUDIES PREVIOUS WORK PRIMARY EDUCATION PRIMARY SCHOOL PRODUCTIVE ACTIVITIES PRODUCTIVE ACTIVITY RURAL POVERTY SCHOOL ATTENDANCE SERVICE PROVIDERS SOCIAL PROTECTION TRAINING COMPONENT TRAINING COURSE TRAINING PROGRAM UNSKILLED LABOR VOCATIONAL COURSES VOCATIONAL TRAINING WAGES WORK ACTIVITIES WORK EXPERIENCE WORKING CHILDREN YOUNG ADULTS YOUNG BOYS YOUNG CHILDREN YOUNG GIRLS YOUNGER CHILDREN
spellingShingle	ACCOUNT AGE GROUP AGE GROUPS ATTRITION CAPITAL INVESTMENTS CAPITAL MARKETS CHILD EDUCATION CHILD LABOR CHILD LABOR DECLINE CHILD LABOR DECLINES CHILD WORK COBB-DOUGLAS PRODUCTION FUNCTION CREATING OPPORTUNITIES DEVELOPMENT ECONOMICS EARNING ECONOMIC GROWTH ECONOMIC SHOCKS ECONOMICS EMPLOYMENT FAMILY MEMBER FAMILY MEMBERS FORMAL EDUCATION FUTURE LABOR HOUSEHOLD CONSUMPTION HOUSEHOLD ENTERPRISES HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD WEALTH HUMAN CAPITAL INCOME INCOME DISTRIBUTION INFORMAL EMPLOYMENT INVENTORY INVESTIGATION LABOR COSTS LABOR INTENSITY LABOR MARKET LABOR MARKETS LABOR OFFICE LABOR SHORTAGES LABORERS LABOUR MERCHANTS MORAL HAZARD OLDER CHILDREN OLDER GIRLS ON-THE-JOB TRAINING OPPORTUNITY COSTS PARENTS POLITICAL ECONOMY PREVIOUS SECTION PREVIOUS STUDIES PREVIOUS WORK PRIMARY EDUCATION PRIMARY SCHOOL PRODUCTIVE ACTIVITIES PRODUCTIVE ACTIVITY RURAL POVERTY SCHOOL ATTENDANCE SERVICE PROVIDERS SOCIAL PROTECTION TRAINING COMPONENT TRAINING COURSE TRAINING PROGRAM UNSKILLED LABOR VOCATIONAL COURSES VOCATIONAL TRAINING WAGES WORK ACTIVITIES WORK EXPERIENCE WORKING CHILDREN YOUNG ADULTS YOUNG BOYS YOUNG CHILDREN YOUNG GIRLS YOUNGER CHILDREN Del Carpio, Ximena V. Does Child Labor Always Decrease with Income? An Evaluation in the Context of a Development Program in Nicaragua
geographic_facet	Latin America & Caribbean Nicaragua
relation	Policy Research Working Paper No. 4694
description	This paper investigates the relationship of household income with child labor. The analysis uses a rich dataset obtained in the context of a conditional cash transfer program in a poor region of Nicaragua in 2005 and 2006. The program has a strong productive emphasis and seeks to diversify the work portfolio of beneficiaries while imposing conditionalities on the household. The author develops a simple model that relates child labor to household income, preferences, and production technology. It turns out that child labor does not always decrease with income; the relationship is complex and exhibits an inverted-U shape. Applying the data to the model confirms that the relationship is concave when all children (8-15 years of age) are included in the sample. Expanding the analysis by stratifying the sample by age and gender shows that the relationship holds only for older children, both genders. The author investigates the effect of the conditional cash transfer program on child labor. The results show that the program has a decreasing effect on total hours of work for the full sample of children. Disentangling labor into two types - physically demanding labor and non-physical labor - reveals that the program has opposite effects on each type; it decreases physically demanding labor while increasing participation in non-physical (more intellectually oriented) tasks for children.
format	Publications & Research :: Policy Research Working Paper
author	Del Carpio, Ximena V.
author_facet	Del Carpio, Ximena V.
author_sort	Del Carpio, Ximena V.
title	Does Child Labor Always Decrease with Income? An Evaluation in the Context of a Development Program in Nicaragua
title_short	Does Child Labor Always Decrease with Income? An Evaluation in the Context of a Development Program in Nicaragua
title_full	Does Child Labor Always Decrease with Income? An Evaluation in the Context of a Development Program in Nicaragua
title_fullStr	Does Child Labor Always Decrease with Income? An Evaluation in the Context of a Development Program in Nicaragua
title_full_unstemmed	Does Child Labor Always Decrease with Income? An Evaluation in the Context of a Development Program in Nicaragua
title_sort	does child labor always decrease with income? an evaluation in the context of a development program in nicaragua
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2008/08/9778582/child-labor-always-decrease-income-evaluation-context-development-program-nicaragua http://hdl.handle.net/10986/6792
_version_	1764401090772598784

Does Child Labor Always Decrease with Income? An Evaluation in the Context of a Development Program in Nicaragua

Similar Items