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Weathering the Storms: Credit Receipt and Child Labor in the Aftermath of the Great Floods (1998) in Bangladesh

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  • Alvi, Eskander
  • Dendir, Seife

Abstract

Summary In this paper we use data from a unique survey conducted in the aftermath of the 1998 floods in Bangladesh to examine how the household shock-child labor relationship is affected by credit receipts of households. Adopting the ratio of assets lost due to the floods as a likely exogenous shock proxy, we find that child labor increases with the magnitude of the shock but only if households do not receive credit. This suggests that following shocks child labor may be a response to non-availability of credit. The policy implication suggests a distinct and alternative channel in combating the economic incentives behind child labor--access to credit diminishes the immediate financial burden on constrained households, reducing their need for child labor.

Suggested Citation

  • Alvi, Eskander & Dendir, Seife, 2011. "Weathering the Storms: Credit Receipt and Child Labor in the Aftermath of the Great Floods (1998) in Bangladesh," World Development, Elsevier, vol. 39(8), pages 1398-1409, August.
    • Handle: RePEc:eee:wdevel:v:39:y:2011:i:8:p:1398-1409
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    4. 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.
    5. Berenger Djoumessi Tiague, 2023. "Floods, Agricultural Production, and Household Welfare: Evidence from Tanzania," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 85(2), pages 341-384, June.
    6. Thakurata, Indrajit & D'Souza, Errol, 2018. "Child labour and human capital in developing countries - A multi-period stochastic model," Economic Modelling, Elsevier, vol. 69(C), pages 67-81.
    7. Owen Davis & Siavash Radpour, 2021. "Dissecting the Pandemic Retirement Surge," SCEPA publication series. 2021-05, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    8. LeDang TRUNG, 2013. "Economic and Welfare Impacts of Disasters in East Asia and Policy ResponsesL The Case of Vietnam," Working Papers DP-2013-11, Economic Research Institute for ASEAN and East Asia (ERIA).
    9. Del Carpio, Ximena V. & Loayza, Norman V. & Wada, Tomoko, 2016. "The Impact of Conditional Cash Transfers on the Amount and Type of Child Labor," World Development, Elsevier, vol. 80(C), pages 33-47.
    10. Quattri, Maria & Watkins, Kevin, 2019. "Child labour and education – A survey of slum settlements in Dhaka (Bangladesh)," World Development Perspectives, Elsevier, vol. 13(C), pages 50-66.
    11. Aïssata COULIBALY, 2016. "Revisiting the Relationship between Financial Development and Child Labor in Developing Countries: Do Inequality and Institutions Matter?," Working Papers 201619, CERDI.
    12. Feridoon Koohi-Kamali & Amit Roy, 2021. "Environmental Shocks and Child Labor: A Panel Data Ethiopia & India," SCEPA working paper series. 2021-05, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.

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