Do market wages influence child labor and child schooling? , Washington, USA World Bank 26pp.
(Social Protection Discussion Paper Series, 24).
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This paper provides empirical evidence on the joint determinants of child labor and child schooling
using individual level data from Egypt. The main findings are as follows: (i) A 10% increase in the illiterate
male market wage decreases the probability of child labor by 21.5% for boys and 13.1% for girls. (ii) Higher
local regional income inequality increases the likelihood of child labor. (iii) Parents who were child laborers
themselves are more likely to send their children out to work. (vi) Local labor market conditions- the share of
adults engaged in the public sector or in non-regular jobs- play an important role in influencing child labor
participation. (iv) There is a trade-off between child labor and child schooling. The results suggest that not only
is poverty the main cause of child labor, but that child labor perpetuates poverty as well
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