2021
Language:
English

Unconditional cash transfers, child labour and education: theory and evidence

Unconditional cash transfers, child labour and education

We examine the impact of unconditional cash transfers (UCTs) on child labour and educational outcomes. We first develop a simple theoretical model where we explore how government transfers financed by labour income taxation affect household decisions on child labour and education. We then empirically examine the impact of Pakistan's Benazir Income Support Programme (BISP), which is the largest cash transfer program in South Asia, on child labour and school outcomes.