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Does child sponsorship pay off in adulthood an international study of impacts on income and wealth (English)

This research estimates the impact of international child sponsorship on adult income and wealth of formerly sponsored children using data on 10,144 individuals in six countries. To identify causal effects, an age-eligibility rule followed from 1980 to 1992 is utilized that limited sponsorship to children twelve years old or younger when the program was introduced in a village, allowing comparisons of sponsored children with older siblings who were slightly too old to be sponsored. Estimations indicate that international child sponsorship increased monthly income by $13–17 over an untreated baseline of $75, principally from inducing higher future labor market participation. Results show evidence for positive impacts on dwelling quality in adulthood and modest evidence of impacts on ownership of consumer durables in adulthood, limited to increased ownership of mobile phones. Finally, results point to modest effects of child sponsorship on childbearing in adulthood.

Details

  • Author

    Wydick,Bruce W., Glewwe,Paul W., Rutledge,Laine

  • Document Date

    2016/02/10

  • Document Type

    Policy Research Working Paper

  • Report Number

    WPS7563

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    World,

  • Region

    The World Region,

  • Disclosure Date

    2016/02/10

  • Disclosure Status

    Disclosed

  • Doc Name

    Does child sponsorship pay off in adulthood ? an international study of impacts on income and wealth

  • Keywords

    child sponsorship;econometric analysis of cross section;labor market participation;labor income;household fixed effect;years of schooling;households with child;difference in income;current labor income;labor force entry;effects of education;increase in labor;labor market activity;primary school education;increase in income;consumer durable goods;impacts on employment;return on asset;country fixed effect;instrumental variable estimation;school meal program;cash transfer program;labor force participation;linear probability model;estimates of income;income due;labor market income;monthly income;positive impact;marginal effect;future labor;high wage;standard error;school uniform;old age;income impact;increased income;consumer good;causal effect;wage equation;program impact;opportunity cost;monthly wage;explanatory variable;educational impact;wage data;income gain;call center;tutoring program;nonparametric estimation;random sample;employment effect;income increase;average wage;wage effect;adult sibling;work status;income data;school impact;0 hypothesis;point estimate;causal link;nutritional impact;poverty action;dairy cow;adult consumer;panel data;Political Economy;separate sample;school participation;quantitative analysis;schooling access;world vision;unobserved characteristic;income equal;income effect;construction material;capital holdings;indoor plumbing;exclusion restriction;summary statistic;high employment;positive income;ordinary people;development policy;open access;improved health;younger sibling;married couple;model yield;statistical association;financial rate;children's education;intended beneficiary;subsistence farming;survey questionnaire;quality measure;similar age;random selection;eligible child;estimate impact;moral value;young woman;average duration;basic healthcare;Vocational Training;local school;marriage rate;children of ages;young adult;older individual;regression table;career choice;linear combination;negative spillover;Child development;small family;human service;variance-covariance matrix;financial return;non-profit organization;school attendance;adult life;program participation;free school;household environment;young age;density function;child's age;household level;wage impact;employment equation;birth order;gender difference;future research;older sibling;natural materials;direct investment;tuition fee;functional form;white-collar employment;estimation procedure;probit equation;educational intervention;marginal impact;low-income household;educational outcome;rural area;missing observation;

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Citation

Wydick,Bruce W. Glewwe,Paul W. Rutledge,Laine

Does child sponsorship pay off in adulthood an international study of impacts on income and wealth (English). Policy Research working paper,no. WPS 7563 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/546741468190160534/Does-child-sponsorship-pay-off-in-adulthood-an-international-study-of-impacts-on-income-and-wealth