Do households resort to child labor to cope with income shocks?
AbstractUsing four rounds of panel household data from the Kagera region of Tanzania, we show that transitory income shocks ¨C measured by the value of crop lost by farming households ¨C lead to significantly increased child labor. A one standard deviation increase in the shock is associated with a 10% increase in mean child working hours. Moreover, we find that households with collateralizable assets ¨C which we interpret as a proxy for access to credit ¨C are better able to offset the effects of income shocks. This evidence supports the view that credit market imperfections are an important determinant of child labor.
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Bibliographic InfoPaper provided by Columbia University, Department of Economics in its series Discussion Papers with number 0203-12.
Length: 27 pages
Date of creation: 2002
Date of revision:
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