LAUSR

ABSTRACT This study investigates the effect of remittance income on child labour and the role of gender in Ghana. Data were sourced from the Ghana Living Standards Survey Round 6. In order to solve the issue of endogeneity, we adopt the instrumental variable approach. The study finds evidence that, irrespective of whoever is the head of the household, the total effect of remittances on child labour is negative. However, the negative effect is much higher for female-headed households. It is recommended that more mobile money transfer outlets be established and the cost of transferring money be reduced to the barest minimum so as to enable households to maximise the benefits of the remittances they receive. Furthermore, financial transfers should be given to female household heads upon the condition of school attendance by their children so as to reduce child labour.