Human Capital Investment in the Presence of Child Labor


Book Description

Policies that improve early life human capital are a promising tool to alter disadvantaged children's lifelong trajectories. Yet, in many low-income countries, children and their parents face tradeoffs between schooling and productive work. If there are positive returns to human capital in child labor, then children who receive greater early life investments may attend less school. Exploiting early life rainfall shocks in India as a source of exogenous variation in early life investment, we show that increased early life investment reduces schooling in districts with high child labor, especially for girls and lower castes. These effects persist and are intergenerational, affecting fertility, per capita household consumption, and other measures of household poverty, and lead to a divergence in the next generations' educational outcomes. Our results are robust to the inclusion of rich controls for district-level characteristics and an IV strategy. We provide evidence that reductions in educational investment in response to positive early life shocks are inefficient.




Human Capital Investment in the Presence of Child Labor


Book Description

Policies that improve early life human capital are a promising tool to alter disadvantaged children's lifelong trajectories. Yet, in many low-income countries, children and their parents face tradeoffs between schooling and productive work. If there are positive returns to human capital in child labor, then children who receive greater early life investments may attend less school. Exploiting early life rainfall shocks in India as a source of exogenous variation in early life investment, we show that increased early life investment reduces schooling in districts with high child labor, especially for girls and lower castes. These effects persist and are intergenerational, affecting fertility, per capita household consumption, and other measures of household poverty, and lead to a divergence in the next generations' educational outcomes. Our results are robust to the inclusion of rich controls for district-level characteristics and an IV strategy. We provide evidence that reductions in educational investment in response to positive early life shocks are inefficient.



















Residential Rivalry and Constraints on the Availability of Child Labor


Book Description

We consider the influence of household-based production on human capital investment. In data from rural Burkina Faso, we document a positive correlation between the presence of girls and enrollment that disappears in households that are able to send out or receive in children. We argue that the connection between education and the sex composition of co-resident children in households that are constrained in their ability to adjust child labor owes to residential rivalry, the idea that having a greater share of resident children with an advantage in household based production increases education by reducing the within-household equilibrium value of child time.




Essays on Education and Child Labor in Developing Countries


Book Description

Child labor can affect human capital investment of children, as the daily available time is limited and an increase in time devoted to child labor reduces the available time for investment in human capital. The tradeoff between child labor and human capital investment is important, as the accumulation of human capital is a crucial factor in curtailing poverty and accelerating development plans undertaken by developing countries. The United Nations Convention on the Rights of the Child emphasizes the importance of education and urges nations not to engage children in work that may interfere with their education. This research is comprised of four chapters that study the relationship between human capital investment and child labor. In the first chapter, I examine the available theoretical and empirical literature to determine the main factors that affect the tradeoff between child labor and human capital investment. The literature identifies income, access to credit, returns to education, and parental preferences as the main factors. In chapter 2, I investigate and analyze the Egyptian's SYPE dataset that I use in chapter 3 and chapter 4. The SYPE is the most recent household survey dataset that provides data on education and child labor of Egyptian young people.




Residential Rivalry and Constraints on the Availability of Child Labor


Book Description

We consider the influence of household-based production on human capital investment. In data from rural Burkina Faso, we document a positive correlation between the presence of girls and enrollment that disappears in households that are able to send out or receive in children. We argue that the connection between education and the sex composition of co-resident children in households that are constrained in their ability to adjust child labor owes to residential rivalry, the idea that having a greater share of resident children with an advantage in household based production increases education by reducing the within-household equilibrium value of child time.