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Child Labor, Crop Shocks, and Credit Constraints

  • Kathleen Beegle
  • Rajeev Dehejia
  • Roberta Gatti

This paper examines the relationship between household income shocks and child labor. In particular, we investigate the extent to which transitory income shocks lead to increases in child labor and whether household access to credit mitigates the effects of these shocks. Using panel data from a survey in Tanzania, we find that both relationships are significant. Our results suggest that credit constraints play a role in explaining child labor and consequently that child labor is inefficient, but we also discuss alternative interpretations.

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File URL: http://www.nber.org/papers/w10088.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10088.

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Date of creation: Nov 2003
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Publication status: published as Beegle, Kathleen, Rajeev Dehejia, and Roberta Gatti. “Child Labor, Crop Shocks, and Credit Constraints.” Journal of Development Economics 81 (September 2006): 80-96.
Handle: RePEc:nbr:nberwo:10088
Note: LS CH
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  17. Ranjan, P., 1999. ""Credit Constraints and the Phenomenon of Child Labor"," Papers 98-99-12, California Irvine - School of Social Sciences.
  18. Jean-Marie Baland & James A. Robinson, 2000. "Is Child Labor Inefficient?," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 663-679, August.
  19. Al-Samarrai, Samer & Peasgood, Tessa, 1998. "Educational attainments and household characteristics in Tanzania," Economics of Education Review, Elsevier, vol. 17(4), pages 395-417, October.
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