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How does credit access affect children's time allocation? Evidence from rural India

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  • Fuwa, Nobuhiko
  • Ito, Seiro
  • Kubo, Kensuke
  • Kurosaki, Takashi
  • Sawada, Yasuyuki

Abstract

Using a unique dataset obtained from rural Andhra Pradesh, India that contains direct observations of household access to credit and detailed time use, results of this study indicate that credit market failures lead to a substantial reallocation of time used by children for activities such as schooling, household chores, remunerative work, and leisure. The negative effects of credit constraints on schooling amount to a 60% decrease of average schooling time. However, the magnitude of decrease due to credit constraints is about half that of the increase in both domestic and remunerative child labor, the other half appearing to come from a reduction in leisure.

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File URL: http://ir.ide.go.jp/dspace/bitstream/2344/815/3/ARRIDE_Discussion_No.183_kubo.pdf
File Function: First version, 2009
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Bibliographic Info

Paper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 183.

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Date of creation: Jan 2009
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Publication status: Published in IDE Discussion Paper. No. 183. 2009.1
Handle: RePEc:jet:dpaper:dpaper183

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Related research

Keywords: Child labor; Schooling; Gender bias; Credit constraint; Household models;

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Cited by:
  1. Alessandro Cigno, 2010. "How to Deal with Covert Child Labour, and Give Children an Effective Education, in a Poor Developing Country: An Optimal Taxation Problem with Moral Hazard," CESifo Working Paper Series 3077, CESifo Group Munich.

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