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Information and Communication Technologies, Agricultural Profitability, and Child Labor in Rural Peru

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  • Diether W. Beuermann

    ()
    (Office of Evaluation and Oversight, Inter-American Development Bank, Washington, USA)

Abstract

We estimate the impact of access to information and communication technologies on agricultural profitability and child labor among isolated villages in rural Peru. We exploit an intervention that provided at least one public (satellite) payphone to 6,509 rural villages that did not previously have any kind of communication services (either landlines or cell phones). We show that the timing of the intervention was uncorrelated with baseline outcomes and exploit it using a panel dataset of treated villages. Consistent with theoretical expectations, we find that profitability increased by 19.5 percent. Moreover, this income shock translated into a reduction in the likelihood of child market work of 13.7 percentage points and a reduction in child agricultural work of 9.2 percentage points. Overall, the evidence suggests a dominant income effect in the utilization of child labor.

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Bibliographic Info

Paper provided by Inter-American Development Bank, Office of Evaluation and Oversight (OVE) in its series OVE Working Papers with number 0211.

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Length: 35 pages
Date of creation: May 2011
Date of revision:
Handle: RePEc:idb:ovewps:0211

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Keywords: Information technology; rural development; child labor; Peru; Latin America;

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  1. Duryea, Suzanne & Arends-Kuenning, Mary, 2003. "School Attendance, Child Labor and Local Labor Market Fluctuations in Urban Brazil," World Development, Elsevier, vol. 31(7), pages 1165-1178, July.
  2. V. Del Carpio, Ximena & Macours, Karen, 2009. "Leveling the Intra-household Playing Field: Compensation and Specialization in Child Labor Allocation," Policy Research Working Paper Series 4822, The World Bank.
  3. Aparajita Goyal, 2010. "Information, Direct Access to Farmers, and Rural Market Performance in Central India," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 22-45, July.
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