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Does Poverty Influence Prevalence of Child Labor in Developing Countries?

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  • Idris Isyaku Abdullahi

    (Department of Economics, Faculty of Economics and Management, University Putra Malaysia, 43400 Serdang, Selangor, Malaysia, Department of Accounting and Finance Technology, Faculty of Management Technology, Abubakar Tafawa Balewa University, Bauchi, Nigeria.)

  • Zaleha Mohd Noor

    (Department of Economics, Faculty of Economics and Management, University Putra Malaysia, 43400 Serdang, Selangor, Malaysia,)

  • Rusmawati Said

    (Department of Economics, Faculty of Economics and Management, University Putra Malaysia, 43400 Serdang, Selangor, Malaysia,)

  • Ahmad Zubaidi Baharumshah

    (Department of Economics, Faculty of Economics and Management, University Putra Malaysia, 43400 Serdang, Selangor, Malaysia,)

Abstract

The present article examined the impact of poverty on child labor prevalence across 42 developing countries based on system-generalize method of moment technique. The main result on the linkage between child labor prevalence and poverty deviated from the popular beliefs in majority of the existing literature that poverty caused child labor prevalence. The finding indicated that poverty is negatively related to child labor prevalence, in the sense that the higher the poverty the lower the child labor prevalence in the sample countries investigated, this finding therefore reconfirmed the wealth paradox of Bhalotra and Heady (2003).

Suggested Citation

  • Idris Isyaku Abdullahi & Zaleha Mohd Noor & Rusmawati Said & Ahmad Zubaidi Baharumshah, 2016. "Does Poverty Influence Prevalence of Child Labor in Developing Countries?," International Journal of Economics and Financial Issues, Econjournals, vol. 6(1), pages 7-12.
    • Handle: RePEc:eco:journ1:2016-01-02
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    References listed on IDEAS

    as
    1. Kaushik Basu, 1999. "Child Labor: Cause, Consequence, and Cure, with Remarks on International Labor Standards," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1083-1119, September.
    2. Basu, Kaushik & Das, Sanghamitra & Dutta, Bhaskar, 2010. "Child labor and household wealth: Theory and empirical evidence of an inverted-U," Journal of Development Economics, Elsevier, vol. 91(1), pages 8-14, January.
    3. Ebeke, Christian Hubert, 2012. "The power of remittances on the international prevalence of child labor," Structural Change and Economic Dynamics, Elsevier, vol. 23(4), pages 452-462.
    4. Sonia Bhalotra & Christopher Heady, 2003. "Child Farm Labor: The Wealth Paradox," The World Bank Economic Review, World Bank, vol. 17(2), pages 197-227, December.
    5. Nkamleu, Guy Blaise, 2006. "Poverty and Child Farm Labor in Africa: Wealth Paradox or bad Orthodoxy," MPRA Paper 15105, University Library of Munich, Germany.
    6. Blunch,Niels-Hugo & Verner,Dorte, 2000. "Revisiting the link between poverty and child labor - the Ghanaian experience," Policy Research Working Paper Series 2488, The World Bank.
    7. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-427, June.
    8. Christelle Dumas, 2007. "Why do parents make their children work? A test of the poverty hypothesis in rural areas of Burkina Faso," Oxford Economic Papers, Oxford University Press, vol. 59(2), pages 301-329, April.
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    Cited by:

    1. Matthew O. Olasupo & Erhabor S. Idemudia, 2017. "Influence of Age, Gender, and Perceived Self-Control on Future Goals of Children in Adversities," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 10(4), pages 1107-1119, December.
    2. Sumbal Shahid & Rana Ejaz Ali Khan, 2020. "Informal Sector Economy, Child Labor and Economic Growth in Developing Economies: Exploring the Interlinkages," Asian Development Policy Review, Asian Economic and Social Society, vol. 8(4), pages 277-287, December.
    3. Monica Puoma LAMBON-QUAYEFIO & Nkechi S. OWOO, 2021. "Investigating the Long-Term Effects of Child Labor on Household Poverty and Food Insecurity in Ghana," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 87(4), pages 561-587, December.

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    More about this item

    Keywords

    Poverty; Remittance; Child Labor Prevalence; System-Generalize Method of Moment; Wealth Paradox; Developing Countries;
    All these keywords.

    JEL classification:

    • P46 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • Z22 - Other Special Topics - - Sports Economics - - - Labor Issues

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