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Remittance Effects on Child Labour: Evidence from Burkina Faso

Olivier Bargain, Delphine Boutin

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Abstract

This article explores the effects of remittance receipt on child labour in an African context. Wefocus on Burkina Faso, a country with a high prevalence of child labour and a high rate of migration. Given thecomplex relationship between remittance receipt and household time allocation decisions, we instrument remittancesusing economic conditions in remittance-sending countries and explore heterogeneous effects acrossdifferent types of potential remitters. While remittances have no significant effect on child labour on average,transfers reduce child labour in long-term migrant households, for whom the disruptive effect of migration is nolonger felt. We find no gender difference but remittances seem to affect mainly the labour market participation ofyounger children.

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What this paper is about

This article explores the effects of remittance receipt on child labour in an African context. Wefocus on Burkina Faso, a country with a high prevalence of child labour and a high rate of migration. Given thecomplex relationship between remittance receipt and household time allocation decisions, we instrument remittancesusing economic conditions in remittance-sending countries and explore heterogeneous effects acrossdifferent types of potential remitters. While remittances have no significant effect on child labour on average,transfers reduce child labour in long-term migrant households, for whom the disruptive effect of migration is nolonger felt. We find no gender difference but remittances seem to affect mainly the labour market participation ofyounger children.

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Available abstract

This article explores the effects of remittance receipt on child labour in an African context. Wefocus on Burkina Faso, a country with a high prevalence of child labour and a high rate of migration. Given thecomplex relationship between remittance receipt and household time allocation decisions, we instrument remittancesusing economic conditions in remittance-sending countries and explore heterogeneous effects acrossdifferent types of potential remitters. While remittances have no significant effect on child labour on average,transfers reduce child labour in long-term migrant households, for whom the disruptive effect of migration is nolonger felt. We find no gender difference but remittances seem to affect mainly the labour market participation ofyounger children.

Key concepts: Remittance, Receipt, Context (archaeology), Demographic economics, Affect (linguistics), Economics, Child labour, Labour economics

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