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There are an estimated 190.7 million economically active children in the world today.¹ Most of these children are living in poor countries. Sixty-four percent live in Asia where nearly 1 in 5 children work. Sub-Saharan Africa's population is much smaller, but more than 1 in 4 children are economically active. These statistics do not include the hundreds of millions more that provide unpaid household services to their families.

Ethnic conflicts and their links to international human trafficking have recently received a surge in international attention. It appears that ethnic conflicts exacerbate the internal displacement of individuals from networks of family and community, and their access to economic and social safety nets. These same individuals are then vulnerable to being trafficked by the hopes of better economic prospects elsewhere. In this chapter, we empirically examine this link between ethnic fragmentation, conflicts, internally displaced persons, refugees, and international trafficking, making use of a novel dataset of international trafficking. We conduct a direct estimation, which highlights the ultimate impact of ethnic fragmentation and conflict on international trafficking through internal and international displacements.

This chapter examines the effects of Oportunidades, a conditional cash transfer program, on the allocation of time of household members in rural Mexico. I exploit the random placement of benefits across communities in the evaluation sample and the program's eligibility criteria and scheme of incentives to identify effects. The majority of Oportunidades benefits are linked to children's school attendance, implying a reduction in the price of schooling. I argue that changes in relative prices lead to substitution effects, whereas the (almost) unconditional nutritional transfer translates into an income effect. Findings show increases in schooling and reductions in children's participation in market and non-market work. Although the program does not seem to substantially alter adults’ time allocation, evidence suggests that adult women substitute for children's time in non-remunerated activities.

The positive relationship between household poverty and child labor decisions need not to be generalised across different types of works and geographical regions. This chapter studies this relationship using the 2004 Malawi Integrated Household Survey data. The study attempts to identify the influence of exogenous change in household consumption on child labor decisions by using consumer durable goods as an instrument. These findings show that child labor was most prevalent and intensive in domestic work, but significant negative relationships between household consumption and child labor supply are only found in unpaid market work. These findings support both poverty reduction and awareness campaigns as child labor eradication strategies. Promotion of non-labor intensive income sources also seems to be an attractive policy option.

Little is known about why children participate in activities that are labeled worst forms of child labor (WFCL). Case–control approaches common in medicine are adapted to consider the correlates of participation in worst forms in the context of two WFCL in Nepal: portering and ragpicking. Paternal disability is a strong predictor of entry into each of the worst forms, and the presence of productive assets within the child's home reduces the risk a child is observed in a worst form. We argue that our findings are consistent with a model where there are negative amenities associated with these jobs that induce the poor and those with the fewest alternative earnings options to select into these WFCL in Nepal.

Conditional cash transfer (CCT) programs have become widespread in poor countries as a way to alleviate current poverty and provide investments in human capital that improve families’ living conditions in the long-term. The first goal is accomplished when poor families receive money from governments on a monthly basis. The second goal is reached by conditioning the cash transfers on certain behaviors such as children's regular school attendance. However, these programs may also have impacts on time use decisions within beneficiary households, particularly with respect to time spent working. Using data from 2003, we measure the impact of the Brazilian Bolsa Escola CCT program on children's and parents’ labor status using the econometric framework of policy evaluation. Probit regressions and propensity score-matching methods show that this program reduces the probability of work for children aged 6–15, increases school enrollment, and increases mother and father participation in the labor force.