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The Most Effective Means of Social Protection? An Evaluation of the Impact of Conditional Cash Transfers on Schooling and Child Labour in Peru

Ilaria Tercelli EMAIL logo
From the journal Basic Income Studies

Abstract

According to the Peruvian Constitution, the legal minimum age for child workers is 12 years old, making it the youngest level in Latin America and among other continents. More than 2 million children in Peru are employed in agriculture, gold mines, as domestic workers and street sellers. Peru is one of the latest countries where conditional cash transfers have been implemented in Latin America. This paper addresses the debate on conditional versus unconditional cash transfers in enhancing school attendance and consequently eradicating child labour and the broader question of targeted versus universal approaches in basic rights and income. Factors such as household’s vulnerability, which can potentially lead to child labour, are highlighted. This paper also examines the method of targeting and the exclusion of groups at greater risk such as street children and single mothers. It uses recent quantitative data from the World Bank and the Peruvian government (2011) and data collected from interviews with programme executives of United Nations agencies and NGOs. It concludes that the only sustainable way to enhance the life chances of Peruvian children is to create strong mechanisms of social protection, such as basic services and income, that are available to every household.

Abbreviations and definitions

BCRP

Banco Central de Reserva del Peru (Central Bank of Peru)

CCT

Conditional Cash Transfers

CDL

Child Domestic Labour

CEPAL

Comisión Económica para América Latina (United Nations Economic Commission for Latin America and the Caribbean)

CIES

Consorcio de Investigación Económica y Social (Association of Economic and Social Research)

CIDA

Canadian International Development Agency

IEP

Instituto de Estudios Peruanos (Institute of Peruvian Studies)

ILO

International Labour Organisation

INEI

Instituto Nacional de Estadística y Informática (National Institute of Statistics)

NGO

Non-governmental Organisation

ODI

Overseas Development Institute

OECD

Organisation for Economic Co-Operation and Development

OTI

Oficina Internacional del Trabajo (International Labour Organisation)

PNUD

Programa de las Naciones Unidas Para el Desarollo (UNDP)

UCW

Understanding Children’s Work (Inter-agency Research Project on Child Labour – ILO, UNICEF and WB)

UNDP

United Nations Development Programme

UNESCO

United Nations Educational, Scientific and Cultural Organisation

UNICEF

United Nations Children’s Fund

WB

World Bank

Appendix: Tables

Table 1:

Juntos impacts on education, disaggregated by age and gender

VariableAllGirlsBoys
Average for control groupJuntos effectNumbers of observationsAverage for control groupJuntos effectNumbers of observationsAverage for control groupJuntoseffectNumbers ofobservations
Registered at school
Age 60.720.11**5240.74−0.12***2500.660.05265
(0.05)(0.07)(0.07)
Age 70.830.10**5300.720.24*2790.84−0.08246
(0.04)(0.05)(0.06)
Age 80.88−0.015580.92−0.032850.780.06273
(0.04)(0.05)(0.06)
Age 90.89−0.054980.86−0.012370.88−0.01***256
(0.04)(0.06)(0.05)
Age 100.79−0.015410.810.022890.79−0.10261
(0.04)(0.06)(0.06)
Age 110.830.015250.830.032750.700.08252
(0.04)(0.05)(0.07)
Age 120.760.045530.790.072580.720.00294
(0.04)(0.06)(0.06)
Age 130.680.085240.650.092680.740.06262
(0.05)(0.09)(0.06)
Age 140.72−0.014880.580.092070.72−0.11291
(0.06)(0.10)(0.08)
Table 2:

Juntos impacts on education, disaggregated by age and gender

VariableAllGirlsBoys
Average for control groupJuntos effectNumbers of observationsAverage for control groupJuntos effectNumbers of observationsAverage for control groupJuntos effectNumbers of observations
School attendance
Age 60.700.12**5270.690.012520.650.12***268
(0.05)(0.08)(0.07)
Age 70.800.13*5280.670.26*2820.81−0.05244
(0.04)(0.06)(0.07)
Age 80.87−0.04556−0.88−0.082850.780.01271
(0.04)(0.06)(0.06)
Age 90.87−0.035000.810.002350.79−0.05254
(0.04)(0.06)(0.05)
Age 100.76−0.065350.770.032920.80−0.09264
(0.04)(0.06)(0.06)
Age 110.800.015210.830.052750.68−0.02244
(0.04)(0.06)(0.07)
Age 120.74−0.005530.760.082600.700.09294
(0.04)(0.07)(0.06)
Age 130.670.045270.65−0.012650.680.00259
(0.05)(0.09)(0.06)
Age 140.68−0.064920.550.062090.70−0.11293
(0.06)(0.10)(0.07)
Table 3:

Juntos impact on labour markets

VariableAverage for control groupJuntos effectNumbers of observationsAverage for control groupJuntos effectNumbers of observationsAverage for control groupJuntos effectNumbers of observations
Adults:AllWomenMen
Employed0.89−0.02**5,5930.88−0.012,7250.96−0.02*2,943
(0.01)(0.01)(0.01)
Number of hours35.90−0.275,57632.34−1.132,75939.63−0.182,943
worked last week(0.62)(0.80)(0.88)
Chidren:AllGirlsBoys
Worked last week0.420.05**4,6400.330.10*2,3490.480.022,378
(0.02)(0.03)(0.03)

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  1. 1

    Due to privacy reasons the respondents will not be named.

Published Online: 2014-7-30
Published in Print: 2013-12-1

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