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Child Labor under Cash and In-Kind Transfers

Author

Listed:
  • Federico Tagliati

Abstract

This paper studies the effects of cash versus in-kind transfers on the time allocation of children exploiting the randomized rollout of a program which transferred either cash or a basket of food to poor households in Mexico. Children in cash-recipient households experience a significantly larger decrease in paid employment and hours of work, and an increase in schooling, as compared to children in in-kind-recipient households. Both transfers are given to a female member of the household to enhance women’s participation in household decision-making. The difference between the cash and in-kind impacts on child time allocation is entirely driven by households presenting characteristics associated with lower female decision-making power. Thus, differences in child employment responses across transfer modalities are likely related to women-targeted transfers having larger effects on female empowerment when provided in cash.

Suggested Citation

  • Federico Tagliati, 2022. "Child Labor under Cash and In-Kind Transfers," The World Bank Economic Review, World Bank, vol. 36(3), pages 709-733.
    • Handle: RePEc:oup:wbecrv:v:36:y:2022:i:3:p:709-733.
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    File URL: http://hdl.handle.net/10.1093/wber/lhac006
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