Household Income as a Determinant of Child Labor and School Enrollment in Brazil: Evidence from a Social Security Reform

Abstract

This article studies the effects of household income on labor participation and school enrollment of children aged 10–14 in Brazil using a social security reform as a source of exogenous variation in household income. I find that increased benefits are associated with increases in school enrollment for girls, as well as a smaller reduction in their labor participation, but I find no effects for boys. I also uncover evidence that the gender of the benefit receiver matters for girls’ labor variables: only benefits received by females reduce girls’ work.