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Child Labor, Crop Shocks, and Credit Constraints

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  • Kathleen Beegle
  • Rajeev Dehejia
  • Roberta Gatti

Abstract

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.

Suggested Citation

  • Kathleen Beegle & Rajeev Dehejia & Roberta Gatti, 2003. "Child Labor, Crop Shocks, and Credit Constraints," NBER Working Papers 10088, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:10088
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    Cited by:

    1. Dean Yang, 2004. "International Migration, Human Capital, and Entrepreneurship: Evidence from Philippine Migrants’ Exchange Rate Shocks," Working Papers 531, Research Seminar in International Economics, University of Michigan.
    2. Hazarika, Gautam & Sarangi, Sudipta, 2008. "Household Access to Microcredit and Child Work in Rural Malawi," World Development, Elsevier, vol. 36(5), pages 843-859, May.
    3. Del Carpio, Ximena V., 2008. "Does child labor always decrease with income ? an evaluation in the context of a development program in Nicaragua," Policy Research Working Paper Series 4694, The World Bank.
    4. Florencia López Bóo, 2012. "In School or at Work? Evidence from a Crisis," Oxford Development Studies, Taylor & Francis Journals, vol. 40(3), pages 381-404, September.
    5. Florencia López Bóo, 2012. "In School or at Work? Evidence from a Crisis," Oxford Development Studies, Taylor & Francis Journals, vol. 40(3), pages 381-404, September.
    6. Heather Congdon Fors, 2012. "Child Labour: A Review Of Recent Theory And Evidence With Policy Implications," Journal of Economic Surveys, Wiley Blackwell, vol. 26(4), pages 570-593, September.
    7. Beck, Thorsten & Demirguc-Kunt, Asli & Levine, Ross, 2004. "Finance, inequality, and poverty: cross-country evidence," Policy Research Working Paper Series 3338, The World Bank.
    8. Kpodar, Kangni & Singh, Raju Jan, 2011. "Does financial structure matter for poverty ? evidence from developing countries," Policy Research Working Paper Series 5915, The World Bank.
    9. Jorge A. Paz, 2008. "Cambios en el ingreso del hogar y sus efectos sobre la escolaridad de menores (Argentina, 1995-2003)," Working Papers 2, Instituto de Estudios Laborales y del Desarrollo Económico (IELDE) - Universidad Nacional de Salta - Facultad de Ciencias Económicas, Jurídicas y Sociales.
    10. Rafael Novella & Claire Zanuso, 2018. "Reallocating children’s time: coping strategies after the 2010 Haiti earthquake," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 8(1), pages 1-32, December.
    11. Papa Seck, 2005. "Do Parents Favor their Biological Offspring over Adopted Orphans? Theory and Evidence from Tanzania," Economics Working Paper Archive at Hunter College 409, Hunter College Department of Economics.
    12. Angela Cipollone, 2011. "Education as a Precautionary Asset," Working Papers CELEG 1108, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    13. Kathleen Beegle & Rajeev Dehejia & Roberta Gatti, 2009. "Why Should We Care About Child Labor?: The Education, Labor Market, and Health Consequences of Child Labor," Journal of Human Resources, University of Wisconsin Press, vol. 44(4).
    14. Edmonds, Eric V., 2006. "Child labor and schooling responses to anticipated income in South Africa," Journal of Development Economics, Elsevier, vol. 81(2), pages 386-414, December.
    15. Singh,Raju & Huang,Yifei, 2016. "Financial channels, property rights, and poverty : a Sub-Saharan African perspective," Policy Research Working Paper Series 7559, The World Bank.
    16. Raju Jan Singh & Yifei Huang, 2015. "Financial Deepening, Property Rights, and Poverty: Evidence from Sub-Saharan Africa," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 1(3), pages 130-151, May.
    17. Berloffa, Gabriella & Modena, Francesca, 2013. "Income shocks, coping strategies, and consumption smoothing: An application to Indonesian data," Journal of Asian Economics, Elsevier, vol. 24(C), pages 158-171.
    18. Bengtsson, Niklas, 2008. "Do Protestant Aid Organizations Aid Protestants Only?," Working Paper Series 2008:6, Uppsala University, Department of Economics.
    19. Javier E. Baez & Dorothy Kronick & Andrew D. Mason, 2013. "Rural Households in a Changing Climate," World Bank Research Observer, World Bank Group, vol. 28(2), pages 267-289, August.
    20. Nazmul Chaudhury & Luc Christiaensen & Mohammad Niaz Asadullah, 2006. "Schools, Household, Risk, and Gender: Determinants of Child Schooling in Ethiopia," CSAE Working Paper Series 2006-06, Centre for the Study of African Economies, University of Oxford.
    21. Abdel-Latif, Hany & Murphy, Phil & Ouattara, Bazoumana, 2016. "Global financial crisis, credit access and children: Evidence from Tanzania," MPRA Paper 83577, University Library of Munich, Germany.
    22. Stijn Claessens & Erik Feijen, 2006. "Financial Sector Development and the Millennium Development Goals," World Bank Publications, The World Bank, number 7145, July.
    23. Eric V. Edmonds & Nina Pavcnik, 2005. "Child Labor in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 199-220, Winter.
    24. Shunsuke Sakamoto, 2006. "Parental Attitudes toward Children and Child Labor: Evidence from Rural India," Hi-Stat Discussion Paper Series d05-136, Institute of Economic Research, Hitotsubashi University.
    25. Thorsten Beck & Asli Demirgüç-Kunt & Ross Levine, 2007. "Finance, inequality and the poor," Journal of Economic Growth, Springer, vol. 12(1), pages 27-49, March.

    More about this item

    JEL classification:

    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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