The impact of cash receipts from abroad on child labor in the Philippines amidst the COVID-19 pandemic
Date
2024-01
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Abstract
This paper examines the effect of cash receipts from abroad on the prevalence of child labor in the Philippines during the COVID-19 pandemic. Child labor, defined as encompassing any labor or economic engagement conducted by individuals aged 5 to 17, subjecting them to exploitation or jeopardizing their well-being, encompassing aspects of health, safety, and overall development. The study addresses the problem of the increasing incidence of child labor in the Philippines, exacerbated by the economic challenges brought about by the pandemic (Cho et al. 2021). The research employs a quantitative methodology, utilizing data from the Family Income and Expenditure Survey-Labor Force Survey (FIES-LFS) conducted in the years 2018 and 2021. We used pooled ordinary least squares (OLS), fixed effects (FE), random effects (RE), difference-in-differences (DID), and instrumental variable (IV) to examine the relationship of cash receipts from abroad, income net of cash receipts, household expenditures on basic needs (food, clothing, and housing), education expenditure, and the percentage of male working children on child labor using the pooled cross-sectional data. The main findings of our study reveal an inverse relationship between cash receipts from abroad and child labor, with other control variables in the model, highlighting the role remittances have in reducing the prevalence of child labor in the Philippines. We discovered that COVID-19 pandemic led to confounding changes in remittances, household income, and labor decisions. Additionally, the study identifies a positive correlation between expenditures on needs and child labor, suggesting that increased household expenses at the height of the pandemic forced families to allow their children to work. Furthermore, our research emphasizes the need for policies and interventions that not only address income needs but also safeguard the rights and education of children. The study also suggests the importance of conducting further research, possibly adopting a longitudinal approach, or tackling a wider scope, to better and significantly understand the evolving dynamics between cash receipts from abroad and child labor incidence over time.
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Keywords
child labor, cash reciepts from abroad, COVID-19