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Child labor among farm households in Mozambique and the role of reciprocal adult labor

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  • Fumagalli, Laura
  • Martin, Thomas

Abstract

We test the impact of a reciprocal adult labor program, Ajuda Mútua (AM), on child labor and schooling. AM was introduced into the province of Nampula in Mozambique, an area where farm production relies on child labor, potentially due to labor and financial market failures. Using difference in differences, we estimate that AM reduces child labor by eight percentage points. We argue that AM reduces child labor by providing low-cost adult labor and potentially increasing farm productivity. We benchmark the AM results against the impact of Village Saving and Loan Associations (VSLA) and AM and VSLA in combination (VAM). Neither VSLA nor VAM reduce child labor. If credit is used in a way that increases labor demand beyond what can be accommodated by AM labor, child labor may increase. We conclude that addressing labor market failures may be more successful at reducing child labor than addressing financial market failures. Results on schooling are mixed.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:wdevel:v:161:y:2023:i:c:s0305750x22002856
    DOI: 10.1016/j.worlddev.2022.106095
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    References listed on IDEAS

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    4. Britta Augsburg & Ralph De Haas & Heike Harmgart & Costas Meghir, 2015. "The Impacts of Microcredit: Evidence from Bosnia and Herzegovina," American Economic Journal: Applied Economics, American Economic Association, vol. 7(1), pages 183-203, January.
    5. Kurosaki, Takashi & Fafchamps, Marcel, 2002. "Insurance market efficiency and crop choices in Pakistan," Journal of Development Economics, Elsevier, vol. 67(2), pages 419-453, April.
    6. Sonia Bhalotra & Christopher Heady, 2003. "Child Farm Labor: The Wealth Paradox," The World Bank Economic Review, World Bank, vol. 17(2), pages 197-227, December.
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    Cited by:

    1. Arciniegas, Christian & Dumas, Christelle & Fahn, Matthias, 2025. "Informal Labor Exchange Teams and Participation in the Labor Market: Evidence from Rural Tanzania," IZA Discussion Papers 17852, IZA Network @ LISER.
    2. repec:aif:market:v:1:y:2025:i:1:p:38-53 is not listed on IDEAS
    3. 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).
    4. Himashi Muthugala & Tharaka Magammana & Amanda Bandara & Ayodhya Perera & Ruwan Jayathilaka, 2025. "Unveiling the Economic Determinants of Child Labour in Africa: A Comprehensive Study of 37 Countries," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 18(3), pages 1329-1361, June.
    5. David Lucas Muaga Junior, 2024. "Financial Markets and Sustainability: Lessons from Mozambique and China," International Journal of Science and Business, IJSAB International, vol. 1(1), pages 38-53.

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    Keywords

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    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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