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Productivity Shocks and Child Labor: The Role of Credit and Agricultural Labor Markets

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  • Christelle Dumas

Abstract

Economic shocks have been shown to affect child labor, particularly when households cannot access credit. This paper asks whether access to agricultural labor markets also reduces the impact of productivity shocks on child labor. Using panel data from Tanzania, I show that (1) child labor rises with a positive rainfall shock, (2) child labor rises less when households have access to a labor market, and (3) the labor market seems more efficient than the credit market in smoothing child labor. These findings are consistent with theoretical predictions and highlight that imperfect labor markets are important determinants of child labor.

Suggested Citation

  • Christelle Dumas, 2020. "Productivity Shocks and Child Labor: The Role of Credit and Agricultural Labor Markets," Economic Development and Cultural Change, University of Chicago Press, vol. 68(3), pages 763-812.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/701828
    DOI: 10.1086/701828
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    Cited by:

    1. Robin Benabid Jegaden & Jade Lemoine, 2021. "Income shocks and Human capital investment in the presence of credit and insurance market imperfections : Decision-making mechanisms in Ethiopia [Chocs de revenu et éducation des enfants en présenc," Working Papers hal-03527638, HAL.
    2. Bang, James & Mitra, Aniruddha & Abbas, Faisal, 2023. "Remittances and Child Labor in Pakistan: A Tale of Complementarities," GLO Discussion Paper Series 1285, Global Labor Organization (GLO).
    3. André, Pierre & Delesalle, Esther & Dumas, Christelle, 2021. "Returns to farm child labor in Tanzania," World Development, Elsevier, vol. 138(C).
    4. Fumagalli, Laura & Martin, Thomas, 2023. "Child labor among farm households in Mozambique and the role of reciprocal adult labor," World Development, Elsevier, vol. 161(C).
    5. Sen, Kritika & Villa, Kira M., 2022. "Rainfall shocks and adolescent school-work transition: Evidence from rural South Africa," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322383, Agricultural and Applied Economics Association.
    6. Benabid Jegaden, Robin & Lemoine, Jade, 2021. "Chocs de revenu et éducation des enfants en présence d’imperfections du marché du crédit et de l’assurance : Mécanismes décisionnels en Ethiopie," SocArXiv 3qrjv, Center for Open Science.
    7. Chinh T. Mai & Akira Hibiki, 2023. "How Does Flood Affect Children Differently? The Impact of Flood on Children’s Education, Labor, Food Consumption, and Cognitive Development," CIRJE F-Series CIRJE-F-1211, CIRJE, Faculty of Economics, University of Tokyo.
    8. Polyxeni Kechagia & Theodore Metaxas, 2021. "Are Working Children in Developing Countries Hidden Victims of Pandemics?," Social Sciences, MDPI, vol. 10(9), pages 1-18, August.
    9. Sylvanus Gaku & Emmanuel S. Tsyawo, 2021. "Neighbourhood effects and the incidence of child labour," Letters in Spatial and Resource Sciences, Springer, vol. 14(3), pages 247-259, December.
    10. Aparajita Dasgupta & Anahita Karandikar, 2021. "Gender-Gap in Learning Outcomes under Rainfall Shocks: The Role of Gender Norms," Working Papers 70, Ashoka University, Department of Economics.

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