The power of Remittances on the Prevalence of Child Labor

Christian Hubert Ebeke ()

No 200924, Working Papers from CERDI

Abstract: This article examines the relationship between migrants' remittances and the prevalence of child labor by using a large sample of developing countries. In particular, we investigate whether the inflows of remittances help to offset the effects of financial constraints and income shocks on the prevalence of child labor. Starting from a simple theoretical model, then based on a sample of 82 developing countries (of which 31 are African) observed in the year 2000 and after taking into account the endogeneity of remittances, migration and financial development, we show that remittances reduce significantly the prevalence of child labor in developing countries characterized by weak financial systems and by strong income instability. However, we have not found a statistically significant relationship between adults’ emigration and child labor at home. Policy recommendations for specific strategies to facilitate receipt of remittances by households are more than ever appropriate for a region like Sub-Saharan Africa, which currently receives a small fraction of these funds compared to other developing countries, and where the prevalence of child labor is still a serious issue.

Keywords: Remittances; Financial Development; Income variability; Child Labor; LDCs; Instrumental variables (search for similar items in EconPapers)
Pages: 27
Date: 2009
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Related works:
Journal Article: The power of remittances on the international prevalence of child labor (2012)
Working Paper: The power of Remittances on the Prevalence of Child Labor (2011)
Working Paper: The power of Remittances on the Prevalence of Child Labor (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:cdi:wpaper:1111

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