Effect of cash transfers on child labor and schooling in Kenya

Abstract

The study analyzed the effect of cash transfers on child labor and schooling in Kenya. The study investigated the role of cash transfers as a social protection tool on the welfare of the orphans and vulnerable children. The study further investigated how these cash transfers affect the work and schooling patterns of the recipients. A sample consisting 200 households living in informal settlements from Kwale district in Kwale County was used. Probit models were estimated to achieve the objectives of the study. The results of this analysis show that indeed the cash transfer to orphaned and vulnerable children increases school enrollment and participation, which is in line with the government‟s vision of education for all as well as the MDG goal on universal basic education. The effect on work varied from household to household, depending on which of the income or substitution effects dominates the other. The difference in the prevalence of child labor between the CT-OVC beneficiary and non beneficiary households were marginal. This paper recommends that the government should consider an upward review of the transfer amounts to households, taking cognizance of the size of each household. The government should also direct considerable effort to adult and civic education as this paper found that the education level of the household heads significantly determined the choice between labor and school for their children