Limiting child labor through behavior-rased income transfers: An experimental evaluation of the PETI Program in rural Brazil

The Programa de Erradicacao do Trabalho Infantil (PETI) was first implemented in rural states of Brazil in 1996. Its aim was to reduce child labor by creating an afterschool program which doubled the length of the school day. PETI also provided an income subsidy to low-income households whose children participated. Comparison of child schooling, labor participation, hours worked, academic progress and dangerous work in PETI households versus control households indicate that the program increased academic performance and lowered child labor for participating households. Nonparticipating children worked longer hours after PETI implementation, but no other adverse spillover effects were observed.