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Here Comes the Rain Again: Productivity Shocks, Educational Investments, and Child Work

Author

Listed:
  • Christophe J. Nordman
  • Smriti Sharma
  • Naveen Sunder

Abstract

This study uses household-level panel data from a nationally representative survey to estimate the effect of agricultural productivity shocks—as proxied by exogenous annual rainfall deviations—on education expenditures and children’s work status in rural India. We find that a transitory increase in rainfall significantly reduces education expenditures and increases the likelihood of child labor across multiple work activities. Additionally, households owning land and those with better credit access increase the use of child labor as rainfall increases because labor (and land) markets are incomplete. The effects of productivity shocks are reinforced for marginalized castes and for less educated households, thereby exacerbating inequalities in education.

Suggested Citation

  • Christophe J. Nordman & Smriti Sharma & Naveen Sunder, 2022. "Here Comes the Rain Again: Productivity Shocks, Educational Investments, and Child Work," Economic Development and Cultural Change, University of Chicago Press, vol. 70(3), pages 1041-1063.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/713937
    DOI: 10.1086/713937
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    Cited by:

    1. Pham, Trinh, 2022. "The child education and health ethnic inequality consequences of climate shocks in Vietnam," Economics of Education Review, Elsevier, vol. 90(C).
    2. Yasmine Bekkouche & Kenneth Houngbedji & Oswald Koussihouede, 2022. "Rainy days and learning outcomes: Evidence from Sub-Saharan Africa," Working Papers DT/2022/07, DIAL (Développement, Institutions et Mondialisation).
    3. Sen, Kritika & Villa, Kira M., 2022. "Rainfall shocks and adolescent school-work transition: Evidence from rural South Africa," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322383, Agricultural and Applied Economics Association.
    4. Shahla Akram & Mehboob Ul Hassan & Muhammad Farrukh Shahzad, 2024. "Factors Fuelling the Persistence of Child Labour: Evidence from Pakistan," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 17(4), pages 1771-1790, August.
    5. 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.
    6. Sivadasan, Jagadeesh & Xu, Wenjian, 2021. "Missing women in India: Gender-specific effects of early-life rainfall shocks," World Development, Elsevier, vol. 148(C).
    7. Sharma, Smriti & Sunder, Naveen, 2024. "Crime and Human Capital in India," IZA Discussion Papers 17037, Institute of Labor Economics (IZA).
    8. Rodrigo Pérez-Silva & Mayarí Castillo & Chiara Cazzuffi, 2023. "Droughts and Local Labor Markets. Studying Heterogenous Effects on Women and Indigenous People in Chile," Economics of Disasters and Climate Change, Springer, vol. 7(2), pages 281-302, July.

    More about this item

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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