Causal effect of educational policy on child labour: A natural experiment from Ghana's FCUBE

Child labour remains a complex issue in developing countries, hindering child development. Therefore, policies and strategies to address this problem are crucial. This paper explores the potential effect of Ghana's Free Compulsory Universal Basic Education (FCUBE) on child labour. Further analysis of the variations in the FCUBE effect among younger and older children, as well as sector-specific effects, was considered. Using data from the Ghana Child Labour Survey and the Ghana Living Standard Survey, the study employed the regression discontinuity design for the analysis. Overall, the study identified a significant reduction in the likelihood of children engaging in child labour and a decrease in hours worked in the last 7 days due to FCUBE. Similar findings were observed for younger children, while older children experienced a reduction in child labour participation both in the last 7 days and over 12 months. Notably, FCUBE appears to have a greater impact in reducing child labour on older children compared to younger children. The study also highlights a decrease in child labour in the agriculture sector due to FCUBE. These findings demonstrate the positive impact of FCUBE in reducing child labour in Ghana. However, additional interventions are needed to address child labour comprehensively across all sectors of the economy