The Trade-Off between Child Labor and Schooling: Influence of Social Labeling Ngos in Nepal

Posted: 22 Aug 2007

See all articles by Sayan Chakrabarty

Sayan Chakrabarty

University of Bonn - Center for Development Research (ZEF); Shahjalal University of Science and Technology - Department of Economics

Ulrike Grote

University of Bonn - Center for Development Research (ZEF); Leibniz Universität Hannover - Faculty of Economics and Management

Guido Lüchters

University of Bonn - Center for Development Research (ZEF)

Multiple version iconThere are 2 versions of this paper

Date Written: February 2006

Abstract

Does the labeling of products which have been produced without any child laborers contribute to increased welfare of children? This paper presents some results of a survey in Nepal conducted to analyze which factors determine the probability of a child to work, and to examine the influence of non governmental organizations (NGOs) which are engaged in social labeling, on the incidence of child labor and child schooling. Data were obtained from interviews with 410 households of Kathmandu Valley in Nepal. The results of the econometric analysis show that the probability of child labor (i) decreases if the carpet industry has implemented a labeling program, (ii) decreases if the adult's income increases ('luxury axiom'), (iii) decreases if the head of the household is educated, (iv) increases with the age of the head of the household, and (v) is increased in the presence of more children (aged 5-14) in the household. It can also be shown that labeling NGOs have a significant positive influence on sending the ex-child laborers to school.

Keywords: Social labeling, child labor, carpet, NGOs, Nepal

JEL Classification: J22, J81, C81

Suggested Citation

Chakrabarty, Sayan and Grote, Ulrike and Lüchters, Guido, The Trade-Off between Child Labor and Schooling: Influence of Social Labeling Ngos in Nepal (February 2006). Available at SSRN: https://ssrn.com/abstract=1007525

Sayan Chakrabarty (Contact Author)

University of Bonn - Center for Development Research (ZEF) ( email )

Walter-Flex-Str. 3
Bonn, NRW 53113
Germany

Shahjalal University of Science and Technology - Department of Economics ( email )

Kumargaon
Akhalia
Sylhet, HI 3114
Bangladesh

Ulrike Grote

University of Bonn - Center for Development Research (ZEF) ( email )

Walter-Flex-Str. 3, D-53113
Bonn
Germany

Leibniz Universität Hannover - Faculty of Economics and Management

Koenigsworther Platz 1
Hannover, 30167
Germany

Guido Lüchters

University of Bonn - Center for Development Research (ZEF) ( email )

Walter-Flex-Str. 3
Bonn, NRW 53113
Germany

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