UNIVERSITY OF CAPE COAST EFFECT OF REMITTANCES ON CHILD WELFARE IN GHANA BY ABDALLAH ABDUL-MUMUNI DECEMBER 2017 Thesis submitted to the Department of Economics of the Faculty of Social Sciences, College of Humanities and Legal Studies, University of Cape Coast in partial fulfilment of the requirements for the award of Doctor of Philosophy degree in Economics COW, DECLARATION Candidate’s Declaration original work and that elsewhere. Candidate’s Signature: Date Supervisors’ Declaration We hereby declare that the preparation and presentation of this thesis were supervised in accordance with the guidelines on supervision of thesis as laid down by the University of Cape Coast. Date. J. \ A .-GL5? ATI Name: Prof Vijay K. Bhasin Co-Supervisor’s Signature: Name: Dr. Camara K. Obeng ii Name: Abdallah Abdul-Mumuni I hereby declare that this thesis is the result of my own no part of it has been presented for another degree in this University or Principal Supervisor’s Signature. Y.......1........ Date.XL). ABSTRACT This thesis investigates the effect of migrant remittances on child welfare in Ghana. The specific objectives are to examine: (1) the effect of remittances and gender on child labour; (2) the effect of remittances on child welfare clinic child education in Ghana. Using the Ghana Living Standards Survey (GLSS) Round 6, the study employs the instrumental variable 2SLS approach in order to achieve the first and third objectives. This approach is adopted in order to address the endogeneity of remittances. To achieve the second objective, the study uses the Poisson regression model. The study finds evidence that irrespective of whoever is the head of the household, remittances income is inversely related to child labour. However, the negative effect is much higher for male-headed households than it is for female-headed households. Furthermore, remittances child welfare clinic attendance thereby improving child health. Finally, the result indicates that remittances have a positive and significant influence on child education. Based on these findings, it is recommended that the Bank of Ghana should facilitate the establishment of more mobile money transfer outlets and reduce the transactions cost of remittance so as to enable households improve child welfare. Furthermore, the government should provide incentives to attract negative impact on child labour. iii more remittances sent to female-headed households in order to enhance their attendance and (3) the effect of remittances on have a positive and significant effect on KEYWORDS Remittances Migration Child labour Child health Child welfare clinic Child education iv ACKNOWLEDGEMENTS I wish to express my sincere gratitude to all those who played key roles in making my Ph.D work a success. My sincere appreciation goes to Prof. Vijay K. Bhasin, principal supervisor who kindly agreed to supervise this thesis. To Dr. Camara K. Obeng, my co-supervisor, I say thank you so much for being an eye opener to me. I cease this opportunity to thank Prof. S.K. Ennim, Prof. Isaac K. Acheampong and Dr. Ekow Asmah, the head of the Department of Economics who made very good suggestions for me to improve my work. v DEDICATION To my wife, Hajia Sadiatu and my children, Abdul-Nazzer and Sherif vi TABLE OF CONTENTS Page iiDECLARATION iiiABSTRACT ivKEYWORDS ACKNOWLEDGEMENTS v viDEDICATION xiiiLIST OF TABLES xivTABLE OF FIGURES LIST OF ACRONYMS xv CHAPTER ONE: INTRODUCTION 1Background to the Study 6Statement of the Problem Objectives of the Study 8 Significance of the Study 9 Scope of the Study 10 Organisation of the Study 11 CHAPTER TWO: CHILD LABOUR, HEALTH CARE SYSTEM AND EDUCATION IN GHANA Introduction 12 Overview of Child Labour in Ghana 12 Health Care System in Ghana 14 Historical Overview of the Health Care System in Ghana 14 Nutritional Status in Ghana 17 vii 17Infant and Child Feeding 18Childhood Mortality 19Deficiencies of Micronutrients 19Vitamin A Deficiency 19Iron Deficiency Anaemia 20Educational System in Ghana Historical Overview of Education in Ghana 20 The System of Education in Ghana 27 27Basic Education 28Secondary Education 28Technical and Vocational Education 30Tertiary Education 32The Way Forward for Education in Ghana 32Conclusion CHAPTER THREE: LITERATURE REVIEW 33Introduction 33Theoretical Literature Review 33Definitions of Child Labour Operational Definition of Child Labour 35 Remittances: Definitions and Characteristics 36 Motives for Sending Remittances 38 Altruistic Motive 38 Self- Interest Motive 40 Implicit Family Contract I: Loan Repayment 41 Implicit Family Contract II: Co-insurance 42 viii 44Theories of Migration 45Neoclassical Theory of Migration 47Push-Pull Theory of Migration 47Migration Systems Theory 49The New Economics of Labour Migration (NELM) 50Trans-Nationalism Theory of Migration World Systems Theory 51 Dual Labour Market Theory of Migration 52 53Network 1 heory of Migration The Effect of Migrants’ Remittances on the Country of Origin: 54A Theoretical Analysis 54The Functional School 55The Structural School 55Channels in Remittance Flows Gender and Preferences in the Use of Remittances 57 59Child Labour: Theoretical Literature Review 62Child Health: Theoretical Literature Review 63Chid Education: Theoretical Literature Review 66Empirical Literature Review Remittances and Child Labour: Empirical Literature Review 66 Female Headship and Child Labour 69 Remittances and Child Health: Empirical Literature Review 70 Remittances and Child Education: Empirical Literature Review 74 Conclusion 83 CHAPTER FOUR: RESEARCH METHODS ix 86Introduction 86Research Design Effect of Remittances and Gender on Child Labour- Theoretical 87Framework 90Empirical Model and Estimation Techniques I 91Specification of the Empirical Model 92Definition, Measurement and Justification of Variables 97Potential Sources of Endogeneity 99Instrumental Variable Estimation-Two Stage Least Squares (2SLS) 103Regression Diagnostics and Post-Estimation Tests 103I lausman Test of Endogeneity 105Weak Identification Test 105Omitted Variables Test Effect of Remittances on Child Welfare Clinic Attendance - 105Theoretical Framework 107Empirical Models and Estimation Techniques II Poisson Regression Model- Child Welfare Clinic Attendance 108 Underlying Assumptions of the Poisson Regression Model 110 Interpretation of the Estimated Poisson Regression Model (PRM) 111 Incidence Rate Ratios 111 Empirical Poisson Model for Child Welfare Clinic Attendance 112 Regression Diagnostics and Post-Estimation Tests 113 Test of Heteroskedasticity of Residuals 113 Model Specification Error Test 113 Goodness-of-Fit of the Model 114 x 116Definition, Measurement and Justification of Variables 119Effect of Remittances on Child Education- Theoretical Framework 120Empirical Model and Estimation Techniques III 120Specification of Empirical Model 121Definition, Measurement and Justification of Variables 125Potential Sources of Endogeneity Instrumental Variable Estimation Model-Two Stage Least Squares (2SLS) 126 127Justification of Instrument Used Regression Diagnostics and Post Estimation Tests 127 127Hausman Test of Endogeneity 129Weak Identification Test 130Omitted Variables Test 130Data Source 131Sample Design 132Conclusion CHAPTER FIVE: EFFECT OF REMITTANCES AND GENDER ON CHILD LABOUR 133Introduction 133Results and Discussion Under-Identification Test 146 Weak Identification Test 147 Test of Omitted Variables 147 Hypothesis Testing of Child Labour Variable 147 Conclusion 148 CHAPTER SIX: EFFECT OF REMITTANCES ON CHILD xi WELFARE CLINIC ATTENDANCE 149Introduction 149Results and Discussion 155Model Specification Error Test Test of Goodness-of-Fit 155 Hypothesis Testing of Child Welfare Clinic Variable 155 Conclusion 156 CHAPTER SEVEN: EFFECT OF REMITTANCES ON CHILD EDUCATION Introduction 157 16511 nder-Identi fication Test 165Weak Identification Test Hypothesis Testing of Child Education Variable 166 166Conclusion CHAPTER EIGHT: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS Introduction 168 168Summary Conclusions 169 Policy Recommendations 170 Study Limitations and Suggestions for Further Research 171 REFERENCES 173 APPENDICES 205 APPENDIX A 205 APPENDIX B 208 xn 210APPENDIX C LIST OF TABLES PageTable 97Definition of Child Labour Variables1 119Definition of Variables for Child Welfare Clinic Attendance2 125Definition of Child Education Variables 136Summary Statistics of Child Labour Variable4 150Average Remittance by Regions5 159Summary Statistics of Child Education Variables6 xiii LIST OF FIGURES PageFigure 42A theoretical average remittance function for loan repayment1 A simplified conceptual framework for remittances and child2 83welfare 134Regional distribution of child labour in Ghana3 151Child welfare clinic attendance by region4 xiv LIST OF ACRONYMS Community-Based Health Planning and ServicesCHPS Council for Technical and Vocational Education and TrainingCOTVET Economic Recovery ProgrammeERP Education Sector Adjustment Credit ProgrammeESACP Free Compulsory Universal Basic EducationFCUBE General Board of EducationGBE Ghana Child Labour Monitoring SystemGCLMS Ghana Demographic and Health SurveyGDHS Ghana Institute of Public AdministrationGIMP A Ghana Living Standards SurveyGLSS Ghana Statistical ServiceGSS International Labour OrganisationILO International Monetary FundIMF Incidence Rate RatioIRR Instrumental VariableIV Infant and Young Children FeedingIYCF Junior High SchoolJHS Junior Secondary SchoolJSS Ministry of Education, Science and SportsMOESS National Health Insurance SchemeNHIS United Nations International Children Emergency FundUNICEF United Nations Educational and Scientific Co-operationUNESCO xv CHAPTER ONE INTRODUCTION In recent times, the development impact of migrant remittances has researchers have mainly investigated the determinants of remittances (Carling, 2008; Hager-Zanker & Siegel, 2007; Lucas & Stark, 1985; Piracha & Saraogi, 2011), others have explored the impact of these remittances on household welfare ( Cuong, 2009; Giang & Pfau, 2009; Quartey, 2006;). In spite of the increase in the inflow of remittances in developing countries, much remains to be learnt about their child welfare impacts. Welfare in this study refers to a state of good health and the presence of conditions required for reasonably comfortable and secure living by the individual. Thus, this thesis extends the discussion on migrant remittances by investigating for Ghana, the effects of remittances income on child welfare using data from the Ghana Living Standards Survey Round 6. The child welfare indicators in the study include child labour, child welfare clinic attendance and child education. The academic and public interest in issues relating to the improvement of child welfare makes the focus of this thesis particularly relevant. Background to the Study Remittances have increasingly become an important source of income in many developing countries. This development has come about as a result of technological advancement and the sudden increase in money transfer outlets (World Bank, 2013). Sander (2003) defines remittances as monies sent from 1 spawned various discussions in the economics literature. Whilst some the increase in both internal and international migration worldwide, sent by migrant workers who left their home country. On the other hand, internal (domestic) remittances are those sent by migrant workers who left their home village or town to work elsewhere in their home country (e.g. rural- urban migration). Remittance flows to developing countries underreported due to weak data recording mechanisms and high levels of informal flows stemming partly from service gaps in the formal money transfer sector (Sander & Maimbo, 2005). The World Bank estimates that remittances to developing countries amounted to about US$429 billion in 2016 (World Bank, 2017). remittances sent to families back homeIn Africa, international reached nearly US$40 billion in 2010, equivalent to 2.6 % of Africa’s gross domestic product (GDP) (Mohapatra & Ratha, 2011) and according to the World Bank (2017), US$34bn was remitted to Sub-Saharan Africa (SSA) in 2016. The data on African migration and remittance flows, however, are likely to be understated because of the scale of undocumented migration within the African continent, the prevalence of informal remittance channels within the region, and the relatively weak official data in many African countries (World Bank 2006). In Ghana, the World Bank figures on migration and remittances, show an increase in international remittances from US$31 million in 1999 to US$2,100 million in 2016 (World Bank, 2015). The increase in international remittances to Ghana could be attributed to the liberalization of the foreign exchange market and the proliferation of money transfer institutions. 2 are substantial yet highly one individual or household to another. International remittances are those different transfer mechanisms available to migrants to send remittances to Ghana, namely, banks, credit unions, small and large money transfer institutions such as Western Union, MoneyGram and VIGO, hand delivery by the sender through a third party and other informal channels. However, the choice of the method of transfer depends on several factors such as the amount sent, the legal status of the migrant, the cost of sending money through the legal channels, the existence of social networks or clubs, government regulations regarding the transfer of money, to mention but financial sector served as the major means through which remittances have been sent. However, the liberalization of the financial sector has made the informal sector less attractive since migrants try to balance higher transactions costs of remitting money with lower risk (Quartey, 2006). In other words, most migrants prefer to pay interest and remit money through formal channels to using the informal channels which are associated with high risk. Overall, the gains from both internal and international remittances to households in Ghana over the years cannot be over-emphasized (Quartey, 2006). What is, however, not clear is whether the flow of these remittances leads to an improvement in the welfare of children in the households. Generally, migrant remittances relax income constraints and allow households to invest in human capital development. In other words, remittances received from migrants provide an opportunity to relax household liquidity constraints in accessing economic opportunities and to improve child welfare- which may have otherwise, not been affordable. Thus, remittances 3 a few. Prior to the liberalization of the financial sector in Ghana, the informal According to Quartey (2006), there are may help the family to reach a subsistence level and, hence, make child labour unnecessary (Basu & Van, 1998). In fact, the additional income received in the form of remittances may also help in improving child health (through child welfare clinic attendance) and child education. Issues relating to remittances and migration migration decisions give rise to the provision of remittances. Thus, while remittances can benefit households by lifting liquidity constraints, migration of a family member may have disruptive effects on family life and a negative effect on child welfare. Studies have shown that the absence of one parent can lead to disruptive effects on the household structure and imposes an economic burden on the remaining household members (Hanson & Woodruff, 2003; Coon, 2016). The migration of a parent can lead to short-term losses in income, including the need to repay debt incurred to fund a migration trip, and abandonment of his/her family (Frank & Wildsmith, 2005) leading to the long­ term loss of household income. Also, the absence of adult supervision resulting from an increase in the migration of adults can negatively affect the educational guidance provided to the child and as a result, lower his educational achievement (Halpem- Manners, 2011). Again, the absence of a parent due to migration is also likely to have consequences on children’s psycho-social development and their performance at school, with some consequences on their participation in economic activities (Edwards & Ureta, 2003; Bansak & Chezum, 2009). These children left behind face significant stress at an early age and this could irreversibly damage the child-parent attachment. Children are also required to 4 are intertwined, as can fracture the nuclear family through infidelity and/or the migrant's undertake household chores that the absent migrant formerly performed and also work to fill the short term income deficit in the family. Furthermore, children are required to engage in market activities to replace the migrant’s former contributions to household income, thereby reducing school attendance and performance. Thus, the child’s wellbeing is compromised if he/she works rather than attends school. If the welfare of children left behind is compromised, they may not only fail to reach their potential, but they may also become an economic and social burden. According to the International Labour Organisation (ILO) (2013), in 2012, there were approximately 168 million children in the world who were caught in child labour, with 85 million in hazardous work. In 2010, the largest number of child labourers was in the Asia-Pacific region (77.7 million), followed by Sub-Saharan Africa (59 million) and Latin America and the Caribbean (12.5 million) (ILO, 2013). With respect to child health, approximately 165 million children under five years old worldwide, are growth stunted, 101 million are underweight, and 52 million are experiencing wasting syndrome (Das, Salam, & Bhutta, 2016). On the global scale, the education of children is also under threat due to high levels of poverty in some communities. Sub-Saharan Africa remains the region with the highest out-of-school rates for all age groups. The global education monitoring report by UNESCO for July 2016 has shown that of the 61 million out-of-school children of primary school age, about 33 million, live worrying situation. 5 in sub-Saharan Africa. These child welfare indicators are undoubtedly, a At the aggregate level, research on migrant remittances (Yang, 2008; household welfare, giving almost no attention to their direct impact on the human capital development of children left behind. However, the causal impact of remittances on child welfare needs more investigation at least for two reasons. Firstly, the impact is not simply equal to the amount of remittances received. Secondly, even if remittances lead to increase in household income, there is no guarantee that they will result in similar increases in child welfare outcomes. Again, literature (e.g. Binci & Gianelli, 2012; Lopez-Ekra, Aghazarm, Kotler & Mollard, 2011) suggests that, from the point of view of children left behind, the gender of the head of household matters in taking household households (Carling, 2005). Thus, differences in the gender of the household head undoubtedly influence the use and impact of remittances (Ramirez, Dominguez, Morais, Ramirez & de Pou, 2005). For instance, the decision by the household to send children to work may depend largely on the gender of the household head. Unfortunately, however, the gender perspective of the effect of remittances on child labour has been less explored, providing at best tentative guide for public policy initiatives. Statement of the Problem Researchers and policy makers have become increasingly interested in the effect of remittances on the welfare of household members left behind in developing countries (de Brauw & Rozelle, 2008; Yang, 2008; Demurger & 6 a substantial Demurger & Xu, 2011) finds that remittances lead to an improvement in Xu, 2011). While a number of studies have indicated that remittances can decisions and remittances are especially important in female-headed benefit left behind household members by increasing household income, relatively little sustained academic scholarship addresses the effect and children left behind and in the Ghanaian case, such studies are almost non-existent. Given the magnitude and pervasiveness of remittance income, for many households, decision relating to child welfare will be affected by remittance flows. Thus, this study seeks to investigate the effect of remittances on child labour, child welfare clinic attendance and child education in Ghana. The decision to choose these indicators among other indicators such as child nutrition and child mortality is based on the following reasons, (i) According to the Ghana Statistical Service (2014), out of a population of 6,972,718 children aged 5-14 years, 24.7% are working and 21.2% are into child labour. (ii) Data from the 2003 Ghana Demographic and Health Survey (GDHS) suggests that one in every nine Ghanaian children dies before reaching age five, (iii) The 2010 population and housing census report that nearly 623,500 children of primary school age are still not enrolled in primary school and one out of four children in the kindergarten age range are not in preschool (GSS, 2012). Against this backdrop, this study seeks to investigate the extent to which remittances income affects child labour, child welfare clinic attendance and child education in Ghana. Previous research on remittances has left many questions unanswered. For instance, many studies on the effect of remittances on child labour (Bargain & Boutin, 2014; Binci & Giannelli, 2012; Nguyen & Nguyen, 2013) tend to ignore the gender dimension of child labour. With migrant remittances, shifts in income sources are likely to affect intra-household decision making, 7 implications of migrant remittances on which suggests potential gender dimensions in the impacts on child labour (Nguyen & Pumamasari, 2011). Thus, any generalisation concerning the role of gender in the use of remittances may lead to biased conclusions. Again, despite the many advantages associated with child welfare clinics, no attempt has been made so far to investigate the effect of remittances flow on child welfare clinic attendance in Ghana. Finally, studies remittances on child education (Gyimah-Brempong & Asiedu, 2015; Hines, 2014; Elbadawy & Roushdy, 2009; Bouoiyour & Miftah, 2016) have ignored the nursery and kindergarten levels in their estimations. However, these levels Objectives of the Study The main objective of the study is to examine the effects of remittances 1. Examine the effect of remittances and gender on child labour. 2. Investigate the effect of remittances on child welfare clinic attendance. 3. Investigate the effect of remittances on child education. Hypotheses of the Study The study seeks to test the following hypotheses Ho: Remittances and gender do not affect child labour1. Ha: Remittances and the gender affect child labour 2. Ho: Remittances do not influence child welfare clinic attendance Ha: Remittances influence child welfare clinic attendance Ho: Remittances do not influence investment in child education.3. Ha: Remittances influence investment in child education. 8 are. nonetheless, very important pails of the school structure. on child welfare in Ghana. Specifically, the study is to: on the effect of Significance of the Study Child welfare is important to study for several reasons. The most obvious may be the immediate compromise of a child’s wellbeing if the child is engaged in child labour rather than attends school. Children who are less educated are likely to have fewer employment options when they grow than their counterparts who have higher education. This has negative consequences for the individual, which often has spill over effects therefore important to understand how many factors including remittances affect child labour, child education and child welfare clinic attendance in Ghana. Furthermore, regardless of the reason behind the differential propensity to use remittance income versus other ordinary income on education, child welfare clinic attendance and child labour, understanding the differences between the two propensities can inform us on policies more suited to alleviating child education and child health deficiencies and reduce child education, health care and reduce child labour, it may be worthwhile to adopt policies that encourage and facilitate remittance transfers as a means of improving child welfare. In addition, investigating the gender effect of the household head on child labour will contribute to the limited existing research on the gender dimensions associated with the potential gains from remittances. It will also lead to the creation of concrete policies, programmes and actions for the eradication of child labour in Ghana. Again, the inclusion of nursery and kindergarten education in the measurement of child education would 9 on the household. It is labour supply. If households display a greater propensity to spend on child contribute to the existing methods used in measuring the effect of remittance income on child education. Moreover, the results which are of interest for economic policy making in Ghana may have broader relevance to the remittances and child welfare debate as well. Since household incomes in Ghana are a fraction of those in many other developing countries that receive remittances, these remittances may be used differently by households in Ghana than in other developing countries, and their effect on child welfare may be different. Thus, our results remittances on child education, child health and child labour in other countries. Finally, the results of the study will provide useful input to policy makers, government and organisations such as UNESCO, UNICEF and the ILO to develop policies and programmes aimed at improving child welfare Scope of the Study The study examines the effect of remittances on child labour. Here, children whose ages are from 5 to 14 years (i.e. less than 15 years) are considered. This age range is consistent with the ILO (broad) definition of child labour (ILO, 2013). The study also looks at the effect of remittances on child welfare clinic attendance by the mother (and child). Nursing mothers are encouraged to send their children under five years regularly to child welfare clinics so as to keep them healthy. It is expected that regular child welfare clinic attendance will lead to an improvement in the health of the child. Finally, the study investigates the effect of remittances on child education. The study examines the effect of remittances on the development of 10 can add to the body of comparative evidence available on the impact of children left behind in Ghana using the number of hours a child spends in school as an indicator. In this study, remittances comprise both international and internal remittances. International remittances are understood as cross-border, private, voluntary monetary transfers made by migrants and diaspora, individually or collectively, to people or to households in Ghana. On the other hand, internal remittances are understood as private, voluntary monetary transfers made by internal migrants individually Ghana. Organisation of the Study Chapter two focuses on an overview of child labour, education and healthcare system in Ghana. The theoretical and empirical literature on the study under review is discussed in chapter three. That is, remittances and their effect on children’s welfare outcomes. The methodology used in investigating the effect of remittances on child welfare in Ghana is discussed in chapter four. Chapter five involves the econometric analysis of the effect of remittances and gender on child labour. Chapter six empirically analyses the effect of remittances on child health. Chapter seven focuses on the econometric analysis of the effect of remittances on child education. Finally, summary, conclusion and recommendations of the study, study limitations as well as suggestions for further research are discussed in chapter eight. 11 or collectively to people or households in CHAPTER TWO CHILD LABOUR, HEALTH CARE SYSTEM AND EDUCATION IN GHANA Introduction This chapter focuses on child labour, the healthcare system as well as education in Ghana. It looks at an overview of child labour in Ghana and continues with the historical overview of the health system in Ghana and well as childhood mortality. Finally, the chapter discusses the historical overview of education and explains the different stages of education in Ghana. Overview of Child Labour in Ghana According to Ghana’s 1992 Republican Constitution, a child is anyone below the age of 18 years. The Ghana Children’s Act (Act 560) prohibits exploitative child labour, and this is defined as labour that deprives children of health, education and development. Ghana has not yet ratified the ILO Minimum Age Convention (1973), but its national legislation complies with it. A minimum age of 13 years is set for light work, 15 years for employment and apprenticeship and 18 years for hazardous work. Child labour in Ghana is not a matter of choice, but rather, a matter of necessity. The prevalence of high poverty rate in some parts of the country compels some parents to depend on their children for extra income needed for the upkeep of the household. Much of child labour in Ghana is performed in the informal sector. UNICEF (2013) reports that in Ghana, most children work from media scrutiny. For instance, rural Ghana has poor infrastructure and 12 on farms and plantations or houses, far from the reach of labour inspectors and further deals with the nutritional status in Ghana as lacks resources, particularly clean water. In view of this, most households in this part of the country most of their children are often pushed out of school and onto the farm. Child labour is also perpetuated by traditional perceptions of the family and the corresponding obligations placed Historically, having more children in a household has meant there are more hands to work on the farm. Beyond tradition, there is also the economics aspect of it. Most households are unable to hire labour to work on their farms, thus further necessitating the burden placed on children in the households to work for their parents. According to UNICEF (2013), 34% of children, boys and girls, between 5 and 14 years are engaged in child labour. In the GLSS 6, it was revealed that 28.5% of the children aged 5-17 years participated in economic activity of which males constituted 29.2% and females, 27.7%. The proportion of children in economic activity was higher in rural (39.0%) than in urban (16.8%) areas. The proportion of male children in child labour was slightly higher (22.7%) than females (20.8%). The proportion of urban children in child labour was 12.4% while that of rural localities was 30.2%. It is stated in the 2003 Ghana Child Labour Survey (GSS, 2003), that child labour is found in many sectors of the Ghanaian economy. The agricultural sector for instance, has the largest proportion of children engaged in child labour (62.5%). According to a report by Tulane University that assessed data collected during the 2008-2009 harvest season, 997 357 children ages 5 to 17 were estimated to be working in the cocoa sector alone. 13 on members in that family. are severely deprived financially. The effect is that Although there is legislation in place to prevent exploitative child work in Ghana, child protection laws remains weak. Apart from this, the Ghana Child Labour Monitoring System (GCLMS), which is an active process to regularly check workplaces to ensure that children are not working at those places has been established to eliminate child labour in Ghana. However, all these measures have so far not worked up to expectation. Health Care System in Ghana This section discusses the historical overview of the health care system, the nutritional status, infant and young child feeding, child mortality as well as the deficiencies of micronutrients in Ghana. Historical Overview of the Health Care System in Ghana According to Senah (2001), the colonial health care system in Ghana is said to have developed in three phases. The first phase (1471-1844) saw the Dumett (1993), before independence, funding of healthcare in Ghana was the sole prerogative of the colonial government or the missionaries where they established partly to protect the colonial masters against the possible contraction of infectious diseases from the “unhygienic” conditions of the “natives’ environment” who they interacted with on a daily basis (Senah, 2001). The second phase of colonial health care system in Ghana began when the bond of 1844 was signed between the British and some local chiefs. The bond was signed in order to enhance European commercial and Christian 14 are rarely invoked and their enforcement emergence and the subsequent establishment of biomedicine. According to involved in the provision of healthcare. The health care system was missionary activities in the hinterland and to also promote the realization that the colonial masters could enjoy good health and also ensure that the health needs of native Ghanaians were also met (Twumasi & Bonsi, 1975). The third phase of the colonial health care system in Ghana was marked by the establishment of the Cape Coast hospital and dispensaries in several rural communities (Senah, 2001). Subsequently, in 1923, the Korle- Bu Teaching Hospital was built to After Ghana gainedpurposely serve the health needs of Ghanaians. independence in 1957, priority was given to effective social and welfare services as a consequence of the devastating effect of colonialism on the health sector. The first national government led by Dr. Kwame Nkrumah revamped the health sector by expanding and modernising health facilities and also training more medical personnel to improve health care delivery (Opare & Mill, 2000). Subsequently, it became easy and more convenient for Ghanaians to seek medical care in government hospitals, health centre and pharmacy at no cost. Senah states that between 1957 and 1963 the number of health centres in Ghana increased from 10 to 41. Also, between 1963 and 1964, about 31 % of total public expenditure went towards the provision of social services with much attention given to the health sector. Again, between 1965 and 1969 government’s health expenditure increased from 6.4% to 8.2% of total public expenditure (Patterson, 1981). Given the above statistics, there is no gainsaying the fact that the government spent more on health care and human resource development. In subsequent years, however, the quality of healthcare began to decline and this 15 system (Osei-Boateng, 1991). Thus, in 1969 user fees were introduced in the health care system and continued until the “Cash-And-Carry” or “Full Cost Recovery System” was introduced in 1985. Upon adoption of the Structural Adjustment Programme (SAP), the government was charged with the responsibility of reducing expenditure on healthcare drastically. As a consequence, patients had to bear the full burden of paying for healthcare. According to Asenso-Okyere and Dzator (1997), government expenditure on health reduced from 10% of the national budget in 1982 to 1.3% in 1997. As healthcare became expensive in the country, many people avoided going to hospitals and health centres to seek medical attention and instead, engaged in self-medication or other cost-saving behaviours or practices (Asenso-Okyere, Anum, Osei-Akoto, & Adukonu, 1998). As a result, in 2003 the Kufour- led administration introduced the National Health Insurance Scheme (NHIS), with the view to providing affordable health care to all residents of Ghana. Essentially, the “Cash and Cary System was abolished and the NHIS was introduced to remove the financial barriers that prevented so many Ghanaians from accessing healthcare services and to ensure equitable access to quality health services especially by the poor and vulnerable. The NHIS is currently financed from four main sources: a value-added tax on goods and services, a reserved portion of social security contributions from formal sector workers, individual premiums, and miscellaneous funds from investment returns, Parliament and donors. The 2.5% tax on selected goods and services, called the National Health Insurance Levy (NHIL), is the largest source of funding, comprising about 70% of 16 was mainly because subsequent governments failed to invest in the health care account for about 5% while other funds account for the remaining 2% (Yankah, 2009). Nutritional Status in Ghana Nutritional status is primarily measured by a child’s growth in height and weight and is directly influenced by food intake and the occurrence of infections. Over the years, Ghana has made great strides in the health sector and so much resources have been invested to sustain this effort. In spite of this, however, available data shows that the rate of under-nutrition is still high. According to the UNICEF report on health and nutrition (2016), more than one in five children in Ghana is suffering from chronic malnutrition. The report further states that the situation is worse in the Northern Region where 37% of children are stunted due to childhood malnourishment. Ghana has so far made some progress in improving child nutrition over the past two decades - such as reducing chronic malnutrition or stunting from 23 to 19% but there is the critical need for further progress (UNICEF, 2016). Infant and Child Feeding Both UNICEF and WHO recommend that children should be exclusively breastfed on demand for the first six months of life. To exclusively breastfeed means feeding infants only breast milk without giving them food, other liquids or water. The recommended Infant and Young Children Feeding (IYCF) practices for complementary feeding of children age 6 to 23 months not breastfed; feeding solid or semi-solid food for a minimum number of times 17 per day according to age and breastfeeding status; and including foods from a are: continued breastfeeding or feeding with appropriate calcium-rich foods if revenues. Social security taxes account for an additional 23%, premiums minimum number of food groups per day according to breastfeeding status. Breastfeeding is nearly universal in Ghana—98% of children are ever breastfed, 52% are breastfed within an hour of birth, and 82% are breastfed within 24 hours of birth. The average length of breastfeeding is 20 months. In Ghana, 63% of children under six months are exclusively breastfed, and the average length of exclusive breastfeeding is 4 months. However, only 41% of breastfed children and 11% of non-breastfed children age 6-23 months Childhood Mortality The 2014 GDHS report shows that infant mortality declined by 47% since 1988, from 77 deaths per 1 000 live births in 1983-1987 to 41 per 1 000 live births in 2010-2014. During the same period, under-5 mortality decreased by 61% from 155 deaths per 1 000 live births to 60 deaths per 1 000 live births. An examination of neonatal mortality rate in Ghana since 1998 reveals that it has decreased at a slower pace than infant and child mortality. This has resulted in an increase in the contribution of neonatal deaths to infant deaths from 53% in 1998 to 71% in 2014 (GDHS, 2014). Over the same period, the contribution of neonatal deaths to under-5 mortality also increased from 28% of under-5 deaths to 48%. This calls for more measures aimed at decreasing neonatal mortality rate to be implemented because it is happening against the background of the implementation of the Health Sector Medium-Term Development Plan 2010-2013, which is part of the Ghana Shared Growth and Planning and Services (OHPS) policy, National Health, Insurance Policy, 18 are fed according to all of the recommended IYCF practices. Development Agenda 2010-2013, including the Community-based Health which provides for free treatment of children under age 18; free maternal delivery services; and malaria control interventions. Deficiencies of Micronutrients In Ghana, deficiencies of micronutrients, particularly vitamin A, iron, and iodine, have an immense impact on child mortality. Vitamin A Deficiency A significant problem in Ghana is vitamin A deficiency, which affects about 7 in 10 children under 5 years of age (Ghana Health Service, 2007). Estimates show that vitamin A deficiency contributes to 1 in 3 deaths of children 6-59 months of age. This means that between 2011 and 2020 the number of child deaths attributable to vitamin A deficiency will total 110 000 (Ghana Nutrition PROFILES, 2011) In view of this, a lot needs to be done to Iron Deficiency Anaemia Anaemia is a condition characterised by a reduction in the red blood cell volume and a decrease in the concentration of haemoglobin in the blood. In Ghana, the most common causes of anaemia are inadequate dietary intake of iron, malaria, and intestinal worm infestation (Ghana Health Service, 2007). According to the Ghana demographic health survey report (GSS, 2015), 66% of children age 6-59 months in Ghana have some level of anaemia: 27% are mildly anaemic, 37% are moderately anaemic, and 2% are severely anaemic. The prevalence of any anaemia is highest among children age 6-8 months (80%); and more than 7 in 10 children under age 2 are anaemic. Overall, prevalence of anaemia decreases as the age of the child increases. 19 ensure that the problem of vitamin A deficiency amongst children is tackled. Educational System in Ghana This section focuses on the historical overview of education, the system of education and the way forward for education in Ghana. Historical Overview of Education in Ghana Formal education is an important part of the skill acquisition process and development of the stock of human capital. It contributes to the process of moulding attitudinal and developing technical skills (Oduro, 2000).Various attempts have been made by scholars and stake holders in the educational sector to analyse the main determinants of education and specific impact education has on an individual and society in general. The people who made initial attempts to introduce formal education in Ghana were the European merchants (especially the Danes, Dutch and English) and their main intention of doing so was to provide employment for their administrative assistants and soldiers. The Christian missionaries also played establishment of formal education in Ghana was concerned. In fact, they realised that, in order to create an independent native church, they needed to have a staff of well-educated local assistants. By 1874 when the British Government took control of the administration of colonial the Gold Coast colony, so much progress had been made in the educational sector and it was still expanding with the majority of the Basel and Wesleyan Mission schools scattered widely over the interior (Okletey, 2013). According to Okletey (2013), by 1881 there were 139 schools of which the Basel Mission had 47 schools, the Wesleyans 84, the Bremen Mission 4 and the Roman Catholic Church had 1. The government, however, realised 20 an important role as far as the that there were so much differences in the systems of education adopted by the various missions. In view of this, in 1882 the government drew the first plan to guide the development of education in Ghana. The main focus of the plan was to establish a General Board of Education (GBE), and to form local boards to study and report on existing conditions. In 1919, the then governor of the Gold Coast, Sir Gordon Guggisberg made remarkable contribution to the educational sector in Ghana (Okletey, 2013). Governor Guggisberg set up the ’1922 Committee’, which eventually led to the establishment of many schools and colleges in the country. By 1950, the total number of primary and secondary schools reached 3,000 with an enrolment of 280 960 boy s and girls. About 6.6% of the population of 4.2 million were in school (Okletey, 2013). aimed at achieving three objectives. First, the policies and strategies were to be used as a tool for producing a scientifically literate population. Secondly, they were to be used as a tool for improving productivity in the country; and thirdly, for producing knowledge to harness Ghana’s economic potential. Investments were therefore made in the whole system of education, from primary to tertiary education with the aim of achieving these objectives. As part of measures aimed at improving the educational system in Ghana, the government initiated the Education Act in 1961 (Act 87), aimed at achieving Free Universal Primary Education. The Act had a two-tier system of education as instituted by the British in colonial times, namely primary and middle education, and secondary education. Three main issues can be highlighted from the Act; First, the Act established Local Education 21 The government policies and strategies for education in 1957 were responsibility to build, equip and maintain all public primary and middle schools in their areas. It was also to establish all such public primary, middle and special schools as are, in the opinion of the Minister, after consultation with the Minister responsible for Local Government. Second, the 1961 Act made education compulsory. For instance, Section 2(1) states that: "Every child who has attained the school-going age as determined by the Minister shall attend a course of instruction as laid down by The third important feature of the 1961 Act is that it emphasized for the provision of free education. Section 20(2) stipulated: "No fee, other than the payment for the provision of essential books or stationery or materials required by pupils for use in practical work, shall be charged in respect of tuition at a public primary, middle or special school. The 1961 Act brought in its wake, very important policies aimed at expanding access to education at all education system that could be described as one of the most respected in Africa (White & Masset, 2004). The government was overthrown in 1966 by the National Liberation Council and this gave birth to a new set of educational reforms. The military government, appointed the problems arising out of the educational system at that time and also to make recommendation for improvement. The Review Committee's proposals covered a wide range of issues concerning education from primary to the 22 levels and in just a matter of a few years after independence, Ghana had an an Education Review Committee (ERC) to examine the Minister in a school recognized for the purpose by the Minister." Authorities within Local Authorities and entrusted them with the university. The structural recommendations by the committee included the following; ■ The school-going age should be six years. ■ Elementary education should have duration of ten years with a break at the end of the eighth year for selecting those suitable for secondary education. ■ After this selection, the remaining middle school pupils should complete their elementary education by attending for two years pre- vocational continuation classes where these are available; otherwise the pupils should continue the study of the ordinary school subjects for the two remaining years. ■ Two-year pre-vocational continuation classes patterned industrial and farming needs of the country should be established in two middle schools of each region to serve as a pilot scheme. ■ The secondary school courses should have a duration of five years, at the end of which suitable pupils may proceed to a two year sixth form course. ■ The first-degree course at the university should be of three years’ duration (four years or more for specialized courses) (Akyeampong, 2010). In 1972 Ghana witnessed yet another coup dQetat led by General Ignatius Acheampong and this led to the development of elaborate programme for education from kindergarten through primary and Junior Secondary School to Senior Secondary School. The new structure and content of education for Ghana were stipulated in the Dzobo Review Committee in 1974. 23 on the Among other things, the Dzobo committee made the following observations: ■ The common entrance as a selection mechanism for secondary school, taken at an early age, discriminated against the many pupils who needed more time to find their levels in life. ■ The many pupils who fail to enter secondary schools did not have the opportunity to develop their minds and were therefore disadvantaged in life. inadvertently fostered the development of unhealthy attitudes towards manual work and occupations of non -academic kind. » Under the existing system, it took 15-17 years to complete pre­ university education, whereas in industrialized countries, such as the USA, it occupied 12-13 years (MOESS, 2008). Subsequently, Ghana experienced a serious national economic decline which affected all social sectors. The economic constraints that bedevilled the country in the late 1970s, made the implementation of the new JSS system virtually impossible. In the early 1980s, Ghana with the support of development partners (i.e. World Bank, IMF', DFID, etc.) embarked on a number of Economic Recovery Programs (ERP), to salvage the economy from further decline and to ensure that the educational sector was on track. Thus, the Education Sector Adjustment Credit Program (ESACP) was introduced to ensure that the review of the Dzobo Report was undertaken. In 1987, some reforms were undertaken and they sought to achieve the following broad objectives: 24 ■ Undue emphasis on mental work ■ Reduce the number of years in pre-tertiary education from 17 to 12 years by turning the 4-year middle into school and changing the 7-year Ordinary and Advanced level secondary school into 3-year Senior Secondary Schools, all in addition to the 6 years of primary schools. ■ Increase access and thus enrolment. ■ Improve teaching and learning by increasing school hours - as well as the school term and replacing untrained teachers with trained ones over time. Increase 4wcost recovery” at the secondary and tertiary levels by,s abolishing food subsidies at boarding schools and charging tertiary students user fees so that they pay a part of the cost of their education, including accommodation expenses. Make education planning and management more effective.s established nationwide. Thus, the 6 years of primary school and 3 years of Junior Secondary School were consolidated into a uniform and continuous 9- revisions in the syllabi and the provision of educational resources ranging from infrastructure such as classroom blocks and libraries and text books and technical skills equipment to enhance teaching and learning. Also, more Senior Secondary Schools were built to absorb the expected increases in enrolment. Between 1992 and 2000, the government further made significant 25 In a bit to achieving the set objectives, Junior Secondary Schools were year free and compulsory basic education. As part of the reforms, there were a 3-year junior secondary contribution to the education sector in Ghana. For instance, in 1996, an educational sector policy known as Free Compulsory Universal Basic Education (FCUBE) was introduced. The main objective of the FCUBE policy was to address the quality concerns in basic education. Thus, the government ensured that more resources were allocated to the education sector to enhance quality and management for efficiency. The FCUBE also aimed at improving teaching processes and learning outcomes; build capacity to manage the basic education; and improve access to basic education, particularly for girls and vulnerable groups in society (Akyeampong, 2010). Overall these measures did not lead to major improvements in quality. The measures did not make a significant difference to ensure that all children of school going age receive free compulsory quality primary education by 2005 (Akyeampong, 2010). In order to address challenges in the educational sector, in 2007 the government set up the Anamuah-Mensah committee to review the entire educational system in Ghana and make it responsive to current challenges. In order to improve quality in the educational sector and increase the number of students who pass the Senior Secondary Certificate Examination (SSCE), the following policies were put in place: ■ Extension of the Senior Secondary School from three years to four years. ■ Implementation of the capitation grant and the school feeding program at the basic level. The basic school system will then consist of 2 years of kindergarten, 6 years of primary education and 3 years of Junior High School. 26 ■ Upgrading of teacher training into the tertiary education system (MOESS, 2008). Subsequently, the 2007 education reforms faced a number of problems at the implementation stage. For example, there were delays in the supply of syllabuses and textbooks for the smooth take off of the program, teachers were not adequately prepared in terms of training to implement the reforms and the fourth year of the Senior High School in September 2010 (MOE, 2010). In August 2009, the government reverted the 4 years Senior High School to 3 years due to the challenges the four years system posed to the government. In conclusion, it is quite interesting to note that from the colonial era to date Ghana’s education system has gone through remarkable transformation with a great deal of success. However, each reform under the various regimes also came along with new challenges as well and the way forward is to ensure that the government put in place a kind of education system to produce the kind of human resource that is required by the various industries as the country aspire to attain a full middle income status by the year 2020. The System of Education in Ghana The system of education in Ghana consists of basic education, secondary/technical/vocational education and tertiary education Basic Education Basic Education in Ghana is now 11 years made up of 2 years of Kindergarten, 6 years of Primary School, and 3 years of JHS. The reason why the 2 years of kindergarten education has been introduced is to ensure that pre- 27 there were inadequate classrooms and other facilities as students proceeded to school education which plays a very important role in the formative years of the child progressively becomes part of the universal, free and compulsory basic education structure. Secondary Education The core subjects taught at the Senior High School (SHS) level are as follows: English language, mathematics, integrated science, social studies and information communication technology (ICT). In addition to the core subjects at the Senior High School, students are offered the opportunity to choose one of the programmes either in agriculture, technical, vocational and general education. The new structure and content of the SHS instruction is to adequately prepare students to enter university or other institutions. Secondary education in Ghana is currently faced with the problem of providing equitable and meaningful access to all qualified students so that dropout rate is significantly reduced. Another challenge being faced by secondary education is the rising cost to both government and parents. This problem is likely to prevent some qualified students from pursuing secondary education thereby affecting enrolment in the secondary schools. Technical and Vocational Education Training is vocational in nature at the secondary level. At the secondary level, vocational technical education aims at equipping young men and women with relevant productive skill training that will enable them fulfil the country’s manpower needs in the field of technology, industry, commerce, agriculture, and business (Baiden, 1996). Ghana uses a combination of two approaches to organise vocational technical education at this level: 28 (a) The parallel system where vocational technical institutions exist alongside the senior high school system. Graduates from the basic level can enter the technical institutes or the SHSs. In the technical institutes, the aim of the government is to train and impart skills leading to the provision of artisans, craftsmen, technicians, and other middle-level personnel in commerce, agriculture, technology, science, and industry. (b) For those who enter the senior high school after the basic level education, there exist a core curriculum and a cluster of elective subjects, which could be vocational technical in nature. Any student interested in a career in vocational technical could select at least three elective subjects in any particular \ ocational or technical field, which the individual student will have to study in addition to the four core liberal subjects (Boateng, 2012). At the tertiary level, vocational technical education is technical in all aspects. It is provided in the universities, polytechnics, technical universities and other post-secondary pre-service training institutions (Boateng, 2012). Vocational technical education systems in Ghana continuous to undergo reform designed to build on the inherent strengths of the system. Recent major reform concern the setting up of national training bodies, and the enactment of laws to strengthen national vocational training programmes. The newly established Council for Technical and Vocational Education and Training (COTVET) will have overall responsibility for skills development in the country. In a bit to improving enrolment in Technical Institutes, the Technical and Vocational Education Division in collaboration with West African Examinations Council and Computerised School Selection and Placement System (CSSPS) have introduced a new scan-able form for 29 Technical Institutes separate from that of Senior Secondary Schools. The objective is to provide better information on technical institutes and increase enrolment. The nature and characteristics of vocational technical education in Ghana presents some unique challenges to institutions. For instance, Vocational technical institutions require workshops, modem tools, equipment, and materials. Vocational technical subjects need to be allotted sufficient time to satisfy their practical goals (Boateng, 2012). Another challenge facing vocational technical education in Ghana is perception that it is a route for drop outs in education. This perception coupled w iih lack of progression routes from vocational technical education into higher education. In 2002, a survey of public TVET teachers found that none of the (Anamuah-Mensah, 2004). Tertiary Education During the last two decades, tertiary education in Ghana has experienced currently comprises the training colleges, polytechnics/technical universities, universities and other professional institutes. Currently there are 9 universities within the public sector which comprises; University of Ghana, University of Cape-Coast, Kwame Nkrumah University of Science and Technology, University of Education, Winneba, University of Development Studies at Tamale, University of Mines and Technology at Tarkwa, University of Health & Allied Sciences in the Volta region, University of Energy and Natural 30 a significant growth. The tertiary level of education in Ghana 87 respondents wanted their own children to study TVET programmes Resources in Brong Ahafo region and University of Professional Studies, Accra, formally known as IPS at Legon. Apart from the aforementioned universities, there are other public Theseprofessional institutions at the tertiary level. include The Ghana Institute of Journalism (GIJ), The National Film and Television Institute (NAFTI), Ghana Institute of Management and Public Administration (GIMPA), Ghana Armed Forces Command and Staff College, Institute of Local Government and Kofi- Annan International Peace Keeping Training Centre (KAIPTC). There is also the Ghana Institute of Languages (GIL) which provides specialized professional training for interpreters and translators in various languages. The second public sector institutions comprise 10 polytechnics/ technical universities, one in each region. It must be noted that in the last two decades so many private tertiary institutions have also been established in various parts of the country to increase enrolment of students. For instance, total enrolments increased tenfold from 10,000 in 1990 and close to 100,000 in 2008. The period 1990-2004, the average annual growth rate reached 18 % for all tertiary institutions combined and 16 % for universities (MOESS, 2008). In the private tertiary institutions alone, the percentage enrolment has shot up from 4% to almost 20% from the period 2004-2008 (MOESS, 2008). There has also been a significant increase in enrolment in the polytechnics over the years. Flowever, the increase is more towards business related programmes and not in science and technology programmes. Addae- Mensah and Asare (2005) state that “educational institutions, including those set up to promote science and technology education, are drifting away from 31 degree awarding or the national norm of 60:40 science and humanities”. In contrast with supposed to prepare students for practically oriented middle-level professions. The Way Forward for Education in Ghana Since Ghana’s independence to date, remarkable achievements have been made by introducing several reforms in the educational system. However, a lot more have to be done to ensure that more successes are chocked. There should be massive investment in education so as to raise performance in school. There is also the urgent need for Government to make technical education, in order to give employable skills to the numerous youth in the country. There is currently a greater number of the youth who are unemployed because they do not have employable skills. Conclusion This chapter has discussed child labour as well as the health and education systems in Ghana. Both the health and education sectors have gone through several reforms and restructuring. The reforms in the health sector are geared toward an improvement in health delivery. The reforms in education sector are aimed at developing employable skills for majority of school leavers. 32 a paradigm shift in its education policy in favour of the vocational and universities, which tend to be more academic in nature, polytechnics are CHAPTER THREE LITERATURE REVIEW Introduction This chapter focuses on the literature relevant to this thesis. It begins with the theoretical literature review by discussing the varying definitions of remittances, motives for sending remittances and the various theories of migration. The chapter further discusses the empirical literature on remittances and child labour, remittances and child welfare clinic attendance and finally, remittances and child education. Theoretical Literature Review This section deals with concepts and reviews relevant theoretical literature on issues related to the study. Operational Definition of Child Welfare In this study, child welfare is defined as a state of good health and the wellbeing of a child. Definition of a Child A child is defined as one who is still largely dependent on an adult for the necessities of life. In this study, a child is a person aged less than 15 years. Definitions of Child Labour Child labour is a complex phenomenon and so there is no child labour definition that is universally accepted. Thus, the definitions of child labour differ by actors, history, context and purpose (Weston, 2005). United Nations International Children Emergency Fund (UNICEF) (1997) states that child labour is a long scale of continuum where one end of it enhances a child’s 33 presence of conditions aimed at protecting and improving the general physical, mental, spiritual, moral with schooling, recreation, and rest. The other end of the scale, however, is destruction or exploitation. This claim by UNICEF raises instance, under what circumstance should beneficial and under what situation should it considered dangerous? There are clearly some forms of child labour that are unacceptable and should not be tolerated at all- child soldiers, child prostitutes and bonded labourers. However, other activities such as house chores and farm work need to be carefully examined to determine the extent at which they impact on children. According to Moyi (2011), it is possible for a particular type of child work to be beneficial and dangerous to the child at the same time. For example, if a child works on the farm, it may lead to the production of food and income. However, working on the farm during school hours will adversely affect the child. Generally, definitions of child labour are either too narrow or too broad. The ILO defines child labour as a situation where • children between 5-11 years of age are economically active; • children between 12-14 years of age work in an economic activity for 14 or more hours per week; and • children between 12-17 years of age engaged in hazardous work. The assumption is that any work that does not interfere with children’s education or health is positive. The definition provided by the ILO is narrow in the sense that it does not include household chores. It therefore tends to 34 one regard child labour as being a number of pertinent questions. For or social development without interfering underestimate the burden of work on children, especially for girls, who are more likely than boys to perform work in a household (Gibbons, Huebier, & Loaiza, 2005). In most countries majority of children participate in household chores by taking care of their siblings, fanning, fetching water, cooking and cleaning (Reynolds, 1991). UNICEF has expanded the ILO definition of child labour by incorporating the importance of domestic work by children in its definition. Thus, it defines child labour broadly hour of economic labour or 28 hours of domestic labour for children aged between 5 and 11 years (2) 14 hours of economic labour or 28 hours of domestic labour for children between 12 and 14 years, and (3) 43 hours of economic labour for children between 15 and 17 years. The definition by UNICEF is not only broad but it is also inclusive and limitations. According to Huebier (2006), the definition by UNICEF provides development. It is, however, of limited value for an analysis of the trade-off between work and school attendance. The fact that a certain number of children in a country are engaged in child labour, as defined by UNICEF, does not mean that the remaining children are free to attend school (Chaubey, 2007). Operational Definition of Child Labour For the purpose of this study, child labour is defined as any economic activity performed by a child between the ages of 5 and 14 years that has the normal development. 35 a good indicator of child labour that is harmful to a child’s physical or mental as work that exceeds (1) 1 a significant improvement from the ILO definition. However, it is without potential to hinder or negatively affect his/her health, education, moral or Remittances: Definitions and Characteristics border payments of relatively low value, often recurrent person-to-person payments by migrants. ” The IMF’s definition is what is often referred to as international remittances. However, many migrants who remit do not necessarily cross any borders, but migrate to another city or region. The remittances they send can have much of the same function and characteristics Sander (2003) defines remittances as: "Monies sent from, one individual or household to another. International remittances are those sent by migrant workers who left their home country. Domestic (internal) remittances are those sent by migrant workers who left their home village or town to work elsewhere in their home country (e.g. rural-urban migration). ” It is important to note that there is a distinction between household or individual remittances and communal or collective remittances. Household remittances are funds transferred from one individual or household to another at international or domestic level. On the other hand, Collective remittances conditions of community members i.e. schools, churches, hospitals etc. what Goldring (2004) refers to as family remittances. The author states that: “the practices associated with sending money “back home” are steeped in identity formation, gender and socialization, which are in turn rooted in social 36 are more often used for investment in the village or town, that improves living as international remittances and should be included in the definition. Thus, (Sander, 2003). This thesis focuses primarily on household remittances, or norms, obligations and/or affective ties that are bound up in processes of According to the IMF (2009), remittances income refers to “cross- networks (of kinship, fictive kinship, friendship, etc.) and processes related to the construction of community, ethnicity and nation ” (Goldring, 2004). "Back home" is used here quite metaphorically and it might mean in a general sense, anywhere household members and friends likely to be dispersed around the country­ living. There also exists a more technical definition of remittances which is related to how remittances should be registered by each country in the balance of payments and reported to the IMF (see IMF, 2009). The technical definition of remittances is quite complex and is not considered here since it serves no purpose for the sake of this thesis. It is quite common to separate between formal and informal remittances; informal remittances being those remittances which are not recorded by official statistics because informal channels such as Hawala, Hundi and Fei Ch’ien among others are being utilized (IMF, 2009; Sander, 2003). These informal channels tend to be used more where the financial sector is either missing, weak, or unreliable (Sander, 2003). Migrants also bring large amounts of money back to the household themselves or through friends. This practice can also be understood as part of the total amount of remittances remitted to back home. However, they are unlikely to be recorded in official statistics and are thus informal. The same applies to goods that are sent home which are often understood as remittances, but do not necessarily reflect in any statistics. 37 or even the world in search for a are residing since they are Motives for Sending Remittances Many theories explain the motives behind migrants’ decisions to send remittances to their relatives back home. The theoretical debate about the motives of remittances was triggered by Lucas and Stark (1985) with their ground-breaking paper “Motivations to remit: Evidence from Botswana”. Lucas and Stark studied remittances on a household level and claimed the altruism or enlightened self-interest”. Any kind of contractual arrangements between the migrant and household left behind can be in the latter category, for example co-insurance, exchange-motives and loan repayment. Motives by altruism assume that an agent receives utility from an increase in utility of family members left behind. On the other hand, an agent may send remittances based on selfish motives. For instance, a migrant may send remittances to the household back home to invest in a property that he or she may eventually use as his or her home. Solimano (2003) states that the analytical literature on the motives behind remittances can be summarised in the following four approaches namely; altruistic motive, self-interest motive, implicit family contract 1: loan repayment and implicit family contract II: Co-insurance. Altruistic Motive Altruistic motive is associated with a situation where remitting is considered as an obligation to the household. Migrants send out remittances to the families out of affection and responsibility towards the families. The migrant, thus, cares about poverty, shocks and other unfortunate situations that the family might face and consequently sends remittances. In this case, there is 38 main motives to be “pure altruism”, “pure self-interest” and “tempered and remittances sent. The altruistic model asserts that sending remittances to households yields a satisfaction to the migrants out of a concern for the welfare of their families. In the endogenous migration approach, Elbadawi, de Rezende Rocha, and Mundial (1992) are of the view that remittances are usually linked to the migrant’s ties with his/her family. Very interesting results may be obtained from an altruistic model wherein the migrant derives utility (Un:) from the utility of those left at home, and the latter utility is presumed to be dependent on per capita consumption (CZ/). For example, suppose the migrant maximizes his own utility with respect to the amount remitted (r): (1) where w is the migrant’s wage, c/Mis his or her consumption, ah are altruism weights attached to various household members, and n is the household size and ch is the household’s consumption. Consumption per capita may further be assumed to increase with income per capita available for the household and may also vary with household size if there are economies or diseconomies of scale in consumption. Thus, we have (2)ci, where y the income per capita at home before receipt of any remittances. Choosing a level of r to maximize (1) subject to (2) provides the following remittance function r = f{w,y,n) (3) 39 il »[c„,(w-r),^aAw(c;,)] //=! f r c y + — .>n a positive relationship between adverse conditions of the receiving household If the migrant indeed cares about his home family and if both his utility function (1) and the household utility functions are well behaved, two properties of the remittance function (3) are predicted: the rate at which the marginal utility of home consumption diminishes. Here, it is assumed that the migrant neither works harder nor accepts worse working conditions with higher pay in order to send remittances home. It is further assumed that no moral hazard is involved in the sense of the home group's reducing effort. There is a wide academic discussion on how to measure altruism, but it is agreed by most academics that it is not right to measure altruism by only looking at the effect of giver and receiver income. Self-Interest Motive According to the self-interest motive, at every point in time, the successful migrant saves and so the need then arises on how and where to accumulate wealth. In most cases, the migrant chooses to invest in his home town or country by buying property, financial assets etc. The family then, acts emigration period. In this case, a migrant sends remittances home with the aspiration to inherit, to demonstrate laudable behaviour as an investment for the future or with the intent to return home. If a migrant wants to invest at home, the family back home can be a trustworthy and well-informed agent. If transport services, cash crops etc. and ask the family to be the agent. The 40 dr/ / dw zero depending on the presence of diseconomies of scale in consumption and as a trusted agent by taking care of those assets for the migrant during the a migrant intends to return home, he may invest in housing, livestock, > 0 and < ® * However, could be greater than or less than migrant may also send remittances to the household in order to build a blackmailing device by the household head to receive remittances. According to self­ interest motive theory, remittances increase with the household’s assets and income, the probability of inheriting (dependent on the age of parents, number of siblings, etc.), the migrant’s wealth and income, and decreases with risk aversion (Hagen-Zanker & Siegel, 2007). It is only in the case of the aspiration to inherit, can self-interest be distinguished from altruism in the migrant’s behaviour and a larger income and or wealth of the household should lead to more remittance income being sent home. Finally, remittances may be sent to parents to ensure that the remittance sender’s own children also take care of him in old age (Cox & Stark, 1996; Cox & Stark, 1994). According to Hagen-Zanker and Siegel, this is referred to as the demonstration effect. implicit Family Contract I: Loan Repayment In Economic theory, there are explanations of the remittances process that considers the family as the main unit of analysis (Addison, 2004). The loan repayment theory states that families tend to develop an implicit contract among those who stay at home. This implicit contract combines elements of investment and repayment. Thus, in the loan repayment theory, the family invests in education of the migrant and usually finances the costs of travel by the migrant to the host town or country. When the migrant starts working and his income begins to increase over time, he repays the loan back to the family by sending remittances. In other words, a household finances a potential migrant’s education if the family implicit lending rate is higher than the 41 reputation for him/herself at home. Inheritance may be used as a market interest rate and the youth borrowing rate is higher than the family implicit lending rate (Poirine, 1997). During the next time period the migrant is able to find a better-paid job in the host town or country due to the education acquired and will send remittances to repay the family for the initial investment. At this stage the migrant might also finance other migrant family members, which increases overall remittances sent to the household. The U- shaped time profile of remittances is shown in Figure 1. In this regard, the family contract has the aim of increasing income rather than reducing uncertainty. Total remittances4 A B Time since migration Figure 1: A theoretical average remittance function for loan repayment Source: Based on Poirine (1997) positive relationship between the migrant’s level of education and remittances sent back to the household. Implicit Family Contract II: Co-insurance The New Economics of Labour Migration (NELM) hypothesis states that because of market failures in the home country (for example, a poorly correlated labour market, entering a type of co-insurance agreement with the 42 A Pay back phase B Loan phase x n, 2 2 s y § Only paying-back can be measured in practice and there should be a developed social protection system), a household member migrates to a non- household left behind. In this model, migration becomes a co-insurance strategy with remittances playing the role of an insurance claim. For instance, if the economic risks between sending and foreign countries are not positively correlated, then the family can send some of its members abroad to diversify the risks. The migrant can support his family during unfavourable economic times at home. Remittances are sent home when the household experiences shocks and to enable the household to invest in new technology. At the same time, the migrant can be supported by his family during bad times in the foreign country. Remittances consequently increase when the household’s income decreases or a shock occurs in the household. There should be no correlation between risks at home and risks in the migrant’s host town or country for this co-insurance agreement to work properly. Similarly, Hoddinott (1994) and Hagen-Zanker and Siegel (2007) assert that remittances are business entity where the relation between its members is seen as a contract. By this, the migrant will send remittances back home when it is necessary to do so and will also receive remittances from home when the need arises to do so. While the above motives are considered to be separate and different, essentially all the same motive, namely an increase in welfare for the sender. All motives can be included in a general individual welfare maximisation function where the individual maximises welfare that includes different elements including own income and household welfare (altruistic motive), possibly over several time periods (loan repayment, insurance or bequest motive) (Hagen-Zanker & Siegel, 2007). It is not only that an individual may 43 they nonetheless, overlap (for example in the reaction to shocks) and are be heterogeneous in his/her motivations to send remittances, but also that different motivations to remit may coexist within the same individual. For example, family contracts may contain a loan and an insurance element at the same time (Rapoport & Docquier, 2006). Theories of Migration A number of models and theories are available in the economic literature that explains the reasons and factors of migration. These models are the integral part of the theory of remittances. The process of remittances is linked with migration. As migrants work and begin to earn income, they send remittances back home to their families. Remittances are therefore, interlinked with migration and a cause of migration. In other words, issues relating to remittances and migration are intertwined, as migration decisions give rise to the provision of remittances. Migration comprises two types namely; internal and international the supply and demand of labour, mostly between the rural traditional agricultural sector and the urban modem manufacturing sector. Rural workers (Hagen-Zanker, 2008). On the other hand, international migration is the movement of people across international boundaries. The research on migration focuses on explaining why people move from one area to another. There is no single theory that explains the causes of migration but one of the most important economic causes is obtaining a higher income in the host country or town. There are also other factors that affect the decision to migrate from one country to another country, such as family and 44 are attracted by the positive wage differential and migrate to the urban sector migration. Internal migration occurs as a result of geographical differences in friendship networks. The most important studies related to this idea are Stark (1991), Massey, Arango, Hugo and Kouaouci (1993) and Bauer and Zimmermann (1995). Yet other researchers attempt to explain why migration occurs. Some important theories of migration are discussed below: Neoclassical Theory of Migration The dominant theory in explaining causes of migration is the neoclassical theory with its underlying assumption that migration is stimulated primarily by rational economic considerations of relative benefits and costs, Themostly financial but also psychological (Todaro & Smith, 2006). neoclassical theory understands migration to be driven by differences in returns to labour across markets. According to this theory; migration is driven by geographic differences in labour supply and demand and the resulting differentials in wages between labour-rich versus capital-rich economies. Under the assumption of frill employment, the theory predicts a linear relationship between wage differentials and migration flows (Massey el al., 1993; Bauer & Zimmermann, 1999; Borjas, 2008). For an individual to migrate at microeconomic level, the decision is based on cost- benefit­ analysis (Sjaastad, 1962; Todaro, 1976). The analysis declares the decision for migration if the net result of cost-benefit is positive. The wage differences and rates of employment among the migrants’ home and host destinations are important factors for emigration. The improvement in the expected earnings in the host country, in the form of increased real salary and more opportunities for employment, increase the probability level to migrate; an improvement in earnings expected in the country of origin reduces the likelihood of emigration; and a reduction in the 45 costs (economic and social) of transferring from one country to another country increases the emigration under this approach. The costs of migration distance between the towns or countries, language difference and the existence of ethnic networks in the host town or country are found to be important determinants in explaining the process of migration. Government policies have factors of migration. For example, developmental policies that tend to increase the wage level in the home towns or countries and reduce the probability of finding jobs in the host towns or countries. Similarly, the human capital approach explains that the incentives to emigrate decreases with age and considers the decision to emigrate as an investment for which the current costs will be recovered in future. In the context of macroeconomic theory, the neo-classical economic theory states that real wage differences among different countries (places) is the main cause of migration and flow of capital (Lewis, 1954; Todaro, 1976). The new international equilibrium is created at which the wages in real terms in all the countries (or places) is restored at the same level. The geographic differences in the supply and demand of labour in the home and host countries or towns are the main factors that guide the decision of individuals to emigrate. Hence, emigration occurs from countries or towns with low wage levels to those with higher wage levels. The second is a capital flow from countries or places where high wage rates are offered to the low rate countries or places. 46 an impact upon migration decision that brings changes in the number of conceptual critique. While this theory is rigorous, it has been viewed as In recent times, the neoclassical theory of migration has faced a mechanically reducing migration factors, ignoring market imperfections, homogenizing migrants and migrant societies and being static. It generally ignores the effects of home and host states and leaves out the importance of politics and policies, which are only considered as additional migration costs. Push-Pull Theory of Migration Related to the neoclassical theory is the push-pull framework which continues to emphasize the economic context of the flow of migrant workers (Bauer & Zimmermann, 1995). This theory examines and explains the factors of migration in both home and migrant destinations. The factors of migration in the home country determine the choice of migration and prove helpful in the process of migration. The demographic factors including growth in population, economic factors like high unemployment and low living standards in the home country and socio political factors are included in these factors. These factors are identified as the push-factors. The pull factors of migration include but not limited to: labour demand, better economic and political conditions, existing rules and regulation and incentives for immigration. Any types of migration such as domestic or international may be examined in the light of pull and push factors. As push and pull factors are largely a mirror-image of each other, the framework has been criticised for its inability to determine dominant factors of migration (De Haas, 2008). The theory fails to identify specific factors that are dominant in the process of migrating from one geographical area to another. Migration Systems Theory The main assumption of the migration systems theory posits that migration alters the social, cultural, economic, and institutional conditions at 47 both home and migrants’ destinations (De Haas, 2009). The migration systems theory includes a variety of disciplines and analysis in the process of migration. The base of this theory is to synthesize the migration movements with the relations of macro and micro structures. The whole economy of the world, associations among states and forces at regional, national and international levels are included in the macro structure. The social relations among the workers in home and migrants’ destination are included in the micro structures (Castles & Miller, 2003). According to the theory, migratory movements arise in response to prior existence of links between sending and receiving states, such as colonial ties, trade or investment flows (Hagen- Zanker & Siegel, 2007). Migration systems theory places much importance to the structure of the world market, especially on the influence exercised by capitalist relations governments and other organisations. International migration occurs because materials fall under the influence of market control. According to this theory, international migration is a consequence of globalization and dissemination into markets, since modem capitalism has brought in its wake, a huge mobile work force in search of better job opportunities. The main critique of the migration systems theory is that it is purely descriptive and unable to account for the decline of migration systems overtime. In addition, the theory does not distinguish between the different conditions prevailing in each sending society and how those conditions affect migration patterns (De La Garza, 2010). 48 on non-capitalist peripheral societies through the actions of the multinationals, land, labour, capital and raw The New Economics of Labour Migration (NELM) The new economics of labour migration (NELM) theory has come to shifted the focus of migration research from individual independence to mutual interdependence (Stark, 1991). According to this theory, the decisions of migrants are influenced by a comprehensive set of factors which are shaped by conditions in the migrants’ home town or country. Thus, migrant decisions are based on a household response to both income risk and to the failures of a variety of markets and not on individual utility-maximizing calculations (Massey et al., 1993). A household member migrates to a non-correlated labour market due to market failures in the migrant’s home town or country, entering a type of co-insurance agreement with the household left behind. The NELM considers a family as a single unit. This single unit of family is used in the analysis for migration and the individual migrant worker is considered a subset of the family. The costs and benefits of the migration decision are shared with the migrant and his or her whole family. Families benefit from the income generated from different sources. This phenomenon is considered as a form of co-insurance. This theory does not reduce the importance of individual activity in decision-making for migration. The individual could be explained in the framework of decision-making unit with his or her whole family (Stark, 1991). The NELM theory has established a unique relation with analytical approach of migration from an economic viewpoint and the more sociological perspective in which human behaviour has been examined. Therefore, 49 new level of analysis and different nature of migration determinants. It has challenge some of the assumptions of the neoclassical approach, offering a actions and performances of an remittances among families are integral to migration according to the new economics of labour migration. Even though to a large extent, the NELM is able to analyse in parallel the determinants and effects of migration, it has been criticised for its limited applicability due to difficulties in isolating the effects of market imperfections and risks from other income and employment variables. Overall, the theory criticised for overlooking dynamics within households (i.e. gender roles) and being so much future oriented (Faist, 2000). Trans-Nationalism Theory of Migration Transnationalism is defined as the processes by which immigrants forge and sustain multi-stranded social relations that link together their societies of origin and settlement (Basch, Schiller, & Blanc, 1994). The transnationalism theory is viewed in the light of expanding globalization, rapid communication system and modem technologies adopted by various countries. Schiller et al. (1995) state that trans-nationalism entails methods in which immigrants form and maintain dimensional social associations that connect with their home as well as host countries. The availability of these modem technologies makes it possible for migrants to be able to connect with their family members back home. Although the concept of transnationalism has gained attention in academia, it has also raised criticism. Thus, critiques have questioned its extent, its novelty and its theoretical strength. For some authors, the transnationalism theory of migration is weak in theory. 50 has not received much following or empirical testing and has also been World Systems Theory Building on the work of Wallerstein (1974), the world system theory of migration links the determinants of migration to structural change in world markets. It views migration as a function of globalization, the increased interdependence of economies and the emergence of new forms and methods structural approach, stresses the role of disruptions and dislocations in peripheral pails of the world, as a result of colonialism and the capitalist according to this approach, is the inevitable result of the problems that are created by capitalist development. Thus, migration follows the dynamics of market creation and structure of the global economy. The expansion of export manufacturing and export agriculture linked strongly to foreign direct investment flows from advanced economies to semi­ developed or emerging economies has led to a disruption in traditional work structures and has mobilized new population segments into regional as well as long distance migration. Thus, capital mobility is considered a crucial factor for the world system theorists. The theory presents capital and labour mobility natural outgrowth of the disruptions and dislocations that inevitably occur in capitalist development and can be observed historically, the theory also brings in global political and economic inequalities (De Haas, 2008). The study of international migration in the recent years has lost a lot of the world systems or global development perspective that was present in the as interconnected and as two sides of the same coin. While migration is a expansion of neoclassical governments and multinationals. Migration, earlier works. This perhaps is due to the fact that it is difficult to derive a set of ''■*pfcq^cq^ of production (Skeldon, 1997; Silver, 2003). The theory takes a historical testable hypotheses and the character of this framework is strongly descriptive because it emerged as ex ante formulation of empirical facts (Favell, 2008; Bijak, 2006). Dual Labour Market Theory of Migration Dual labour market theory, like world system theory, links migration to structural changes in the economy but explains migration dynamics with the demand side (Massey et al., 1993). Developed by Piore (1979), dual labour market theory posits a dual pattern of economic organization in advanced economies. The theory argues that migration is driven by conditions of labour demand rather than supply. The economic situation in advanced countries creates a demand for low-skilled jobs which domestic workers refuse to take the result of a temporary pull factor, namely strong structural labour demand in developed countries. According to Piore (1979), there are three explanations for the demand for international workers in the modem industrial societies. First, there are general labour shortages. This requires filling the base positions in the job hierarchy, and labour shortages in the secondary segment of a dual labour market. General labour shortages lead to vacancies at the bottom positions in the job hierarchy. Second, there are specific shortages at the bottom of the job hierarchy arising from motivational problems. Motivational problems arise because jobs at the bottom of the hierarchy are often associated with low social status and because the opportunities for upward mobility are low. Third, demographic and social changes such as the decline in birth rates and low educational expansion in modern societies are the causes of a 52 up due to, for example, status. In other words, the theory explains migration as high demand for international workers. Thus, as a result of labour shortages at the bottom of the job hierarchy, employers workers. This often leads to an increase in the inflow of young workers who earn money. The primary segment of labour market is characterized by capital- intensive method of production and labour-intensive method of production takes place in the secondary segment. Skilled workers in the primary segment occupy higher social status because they are trained to work with advanced capital. They have higher income and better employment conditions than unskilled workers in the secondary segment. Jobs at the bottom of the labour market are found in the secondary segment. Employment in the secondary sector fluctuates according to the economic cycle, making it unstable and uncertain work, again unattractive to native workers. One critique of the dual labour market theory is that it excludes sending countries and overemphasizes formal recruitment practices. It is unable to account for differential immigration rates in countries with similar economic structures. Network Theory of Migration The network theory of migration looks at what perpetuates migration in time and space (Massey et al., 1993). According to the authors, the network theory argues that: “acts of migration at one point in time systematically alter the context within which future migration decisions are made, greatly increasing the likelihood that later decision makers will choose to migrate”. Governments can do little to solve this situation, because “network formation 53 are willing to take jobs at the bottom of the hierarchy to attain experience and are compelled to recruit foreign pursued. The network theory also helps to explain the reasons why migration patterns are not evenly distributed across countries and cities. migrate, it is associated with a number of limitations. First, although it explains why migration patterns perpetuate, it does not explain why migration starts in the first place. Second, it does not clarify why, given the availability of networks and the pressures of economic factors, some persons choose to migrate and others to stay. The third limitation is that the theory does not leave emigration problem once it is institutionalized (De La Garza, 2010). The Effect of Migrants’