IDEAS home Printed from https://ideas.repec.org/a/bla/deveco/v44y2006i4p465-499.html
   My bibliography  Save this article

On The Mother And Child Labor Nexus Under Credit Constraints: Findings From Rural India

Author

Listed:
  • Yasuyuki SAWADA
  • Kensuke KUBO
  • Nobuhiko FUWA
  • Seiro ITO
  • Takashi KUROSAKI

Abstract

There is an emerging consensus that lack of credit is a major cause of child labor and inequality in the intrahousehold distribution of resources. At the same time, patterns in how children spend their time appear to be strongly influenced by maternal employment decisions. This paper includes an assessment of the effect of credit constraints on maternal employment and that of maternal employment on the intrahousehold allocation of labor, a nexus which has been left unexplored by existing studies. Three findings emerge: (1) a mother is more likely to work outside when a household lacks resources, and her domestic labor can be easily replaced by other members, (2) credit market accessibility is one of the major determinants of maternal labor, and (3) elder daughters assume a large part of the burden of maternal employment by providing domestic labor. Under binding credit constraints, results of this study support the collective as opposed to the unitary model of households.

Suggested Citation

  • Yasuyuki SAWADA & Kensuke KUBO & Nobuhiko FUWA & Seiro ITO & Takashi KUROSAKI, 2006. "On The Mother And Child Labor Nexus Under Credit Constraints: Findings From Rural India," The Developing Economies, Institute of Developing Economies, vol. 44(4), pages 465-499, December.
  • Handle: RePEc:bla:deveco:v:44:y:2006:i:4:p:465-499
    DOI: 10.1111/j.1746-1049.2006.00025.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1746-1049.2006.00025.x
    Download Restriction: no

    File URL: https://libkey.io/10.1111/j.1746-1049.2006.00025.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Garcia, Rene & Lusardi, Annamaria & Ng, Serena, 1997. "Excess Sensitivity and Asymmetries in Consumption: An Empirical Investigation," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 29(2), pages 154-176, May.
    2. Zeldes, Stephen P, 1989. "Consumption and Liquidity Constraints: An Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 97(2), pages 305-346, April.
    3. Seiro ITO, 2006. "Raising Educational Attainment Of The Poor: Policies And Issues," The Developing Economies, Institute of Developing Economies, vol. 44(4), pages 500-531, December.
    4. Morduch, Jonathan, 1994. "Poverty and Vulnerability," American Economic Review, American Economic Association, vol. 84(2), pages 221-225, May.
    5. Nobuhiko FUWA & Seiro ITO & Kensuke KUBO & Takashi KUROSAKI & Yasuyuki SAWADA, 2006. "Introduction To A Study Of Intrahousehold Resource Allocation And Gender Discrimination In Rural Andhra Pradesh, India," The Developing Economies, Institute of Developing Economies, vol. 44(4), pages 375-397, December.
    6. Hanan G. Jacoby & Emmanuel Skoufias, 1997. "Risk, Financial Markets, and Human Capital in a Developing Country," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(3), pages 311-335.
    7. 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.
    8. Rosenzweig, Mark R & Evenson, Robert E, 1977. "Fertility, Schooling, and the Economic Contribution of Children in Rural India: An Econometric Analysis," Econometrica, Econometric Society, vol. 45(5), pages 1065-1079, July.
    9. Pitt, Mark M & Rosenzweig, Mark R, 1990. "Estimating the Intrahousehold Incidence of Illness: Child Health and Gender-Inequality in the Allocation of Time," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(4), pages 969-980, November.
    10. Lokshin, Michael M. & Glinskaya, Elena & Garcia, Marito, 2000. "The effect of early childhood development programs on women's labor force participation and older children's schooling in Kenya," Policy Research Working Paper Series 2376, The World Bank.
    11. William L. Parish & Robert J. Willis, 1993. "Daughters, Education, and Family Budgets Taiwan Experiences," Journal of Human Resources, University of Wisconsin Press, vol. 28(4), pages 863-898.
    12. Dehejia, Rajeev H. & Beegle, Kathleen & Gatti, Roberta, 2003. "Child labor, income shocks, and access to credit," Policy Research Working Paper Series 3075, The World Bank.
    13. Carter, Michael R., 1988. "Equilibrium credit rationing of small farm agriculture," Journal of Development Economics, Elsevier, vol. 28(1), pages 83-103, February.
    14. Skoufias, Emmanuel, 1996. "Intertemporal substitution in labor supply: Micro evidence from rural India," Journal of Development Economics, Elsevier, vol. 51(2), pages 217-237, December.
    15. Fumio Hayashi, 1985. "The Effect of Liquidity Constraints on Consumption: A Cross-Sectional Analysis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(1), pages 183-206.
    16. Kristin Mammen & Christina Paxson, 2000. "Women's Work and Economic Development," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 141-164, Fall.
    17. Pender, John L., 1996. "Discount rates and credit markets: Theory and evidence from rural india," Journal of Development Economics, Elsevier, vol. 50(2), pages 257-296, August.
    18. Fuwa, Nobuhiko & Kurosaki, Takashi & Sawada, Yasuyuki & Ito, Seiro & Kubo, Kensuke, 2006. "Intrahousehold Resource Allocation, Child Labor, and School Enrollment―Evidence from Rural India―," Economic Review, Hitotsubashi University, vol. 57(4), pages 328-343, October.
    19. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    20. Anjini Kochar, 1999. "Smoothing Consumption by Smoothing Income: Hours-of-Work Responses to Idiosyncratic Agricultural Shocks in Rural India," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 50-61, February.
    21. Lorenzo Cappellari & Stephen P. Jenkins, 2003. "Multivariate probit regression using simulated maximum likelihood," Stata Journal, StataCorp LP, vol. 3(3), pages 278-294, September.
    22. Nobuhiko FUWA & Seiro ITO & Kensuke KUBO & Takashi KUROSAKI & Yasuyuki SAWADA, 2006. "Gender Discrimination, Intrahousehold Resource Allocation, And Importance Of Spouses’ Fathers: Evidence On Household Expenditure From Rural India," The Developing Economies, Institute of Developing Economies, vol. 44(4), pages 398-439, December.
    23. Tullio Jappelli, 1990. "Who is Credit Constrained in the U. S. Economy?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(1), pages 219-234.
    24. Jacoby, Hanan G, 1994. "Borrowing Constraints and Progress through School: Evidence from Peru," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 151-160, February.
    25. Hallman, Kelly & Quisumbing, Agnes R & Ruel, Marie & de la Briere, Benedicte, 2005. "Mothers' Work and Child Care: Findings from the Urban Slums of Guatemala City," Economic Development and Cultural Change, University of Chicago Press, vol. 53(4), pages 855-885, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nobuhiko FUWA & Seiro ITO & Kensuke KUBO & Takashi KUROSAKI & Yasuyuki SAWADA, 2006. "Introduction To A Study Of Intrahousehold Resource Allocation And Gender Discrimination In Rural Andhra Pradesh, India," The Developing Economies, Institute of Developing Economies, vol. 44(4), pages 375-397, December.
    2. Tite Ehuitché Beke, 2011. "Institutional constraints and adoption of improved rice varieties: Econometric evidence from Ivory Coast," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 92(2), pages 117-141.
    3. Franklin Simtowe & Manfred Zeller & Aliou Diagne, 2009. "The impact of credit constraints on the adoption of hybrid maize in Malawi," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 90(1), pages 5-22.
    4. María Noelia Garbero, 2012. "Un análisis de los efectos de las restricciones de liquidez en la acumulación de capital humano: Evidencia para Nicaragua," CEDLAS, Working Papers 0136, CEDLAS, Universidad Nacional de La Plata.
    5. Fuwa Nobuhiko & Ito Seiro & Kubo Kensuke & Kurosaki Takashi & Sawada Yasuyuki, 2012. "How Does Credit Access Affect Children's Time Allocation?: Evidence from Rural India," Journal of Globalization and Development, De Gruyter, vol. 3(1), pages 1-28, June.
    6. Beke, Tite Ehuitché, 2011. "Institutional constraints and adoption of improved rice varieties: Econometric evidence from Ivory Coast," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 92(2).
    7. Makino, Momoe, 2012. "What motivates female operators to enter the garment industry in Pakistan in the post-MFA period?," IDE Discussion Papers 374, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    8. Simtowe, Franklin, 2009. "Is relaxing equity constraints panacea for Malawi’s green gold expansion? A fuzzy regression discontinuity design approach," MPRA Paper 17065, University Library of Munich, Germany.
    9. Takashi KUROSAKI & Seiro ITO & Nobuhiko FUWA & Kensuke KUBO & Yasuyuki SAWADA, 2006. "Child Labor And School Enrollment In Rural India: Whose Education Matters?," The Developing Economies, Institute of Developing Economies, vol. 44(4), pages 440-464, December.
    10. Sonia LASZLO & Eric SANTOR, 2009. "Migration, Social Networks, And Credit: Empirical Evidence From Peru," The Developing Economies, Institute of Developing Economies, vol. 47(4), pages 383-409, December.
    11. Momoe Makino, 2018. "Birth Order and Sibling Sex Composition Effects Among Surviving Children in India: Enrollment Status and Test Scores," The Developing Economies, Institute of Developing Economies, vol. 56(3), pages 157-196, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nobuhiko FUWA & Seiro ITO & Kensuke KUBO & Takashi KUROSAKI & Yasuyuki SAWADA, 2006. "Introduction To A Study Of Intrahousehold Resource Allocation And Gender Discrimination In Rural Andhra Pradesh, India," The Developing Economies, Institute of Developing Economies, vol. 44(4), pages 375-397, December.
    2. Sung Jin Kang & Yasuyuki Sawada, 2008. "Credit Crunch And Household Welfare, The Case Of The Korean Financial Crisis," The Japanese Economic Review, Japanese Economic Association, vol. 59(4), pages 438-458, December.
    3. Beegle, Kathleen & Dehejia, Rajeev H. & Gatti, Roberta, 2006. "Child labor and agricultural shocks," Journal of Development Economics, Elsevier, vol. 81(1), pages 80-96, October.
    4. Dehejia, Rajeev H. & Beegle, Kathleen & Gatti, Roberta, 2003. "Child labor, income shocks, and access to credit," Policy Research Working Paper Series 3075, The World Bank.
    5. Kathleen Beegle & Rajeev Dehejia & Roberta Gatti, 2003. "Child Labor, Crop Shocks, and Credit Constraints," NBER Working Papers 10088, National Bureau of Economic Research, Inc.
    6. Yasuyuki Sawada & Kazumitsu Nawata & Masako Ii & Jeong-Joon Lee, 2007. "Did the Credit Crunch in Japan Affect Household Welfare? An Augmented Euler Equation Approach Using Type 5 Tobit Model," CIRJE F-Series CIRJE-F-498, CIRJE, Faculty of Economics, University of Tokyo.
    7. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2009. "The Effects of Multinational Production on Wages and Working Conditions in Developing Countries," World Scientific Book Chapters, in: Globalization And International Trade Policies, chapter 17, pages 623-687, World Scientific Publishing Co. Pte. Ltd..
    8. Fuwa Nobuhiko & Ito Seiro & Kubo Kensuke & Kurosaki Takashi & Sawada Yasuyuki, 2012. "How Does Credit Access Affect Children's Time Allocation?: Evidence from Rural India," Journal of Globalization and Development, De Gruyter, vol. 3(1), pages 1-28, June.
    9. Jeong-Joon Lee & Yasuyuki Sawada, 2005. "Precautionary Saving under Liquidity Constraints: Evidence from Rural Pakistan (Published in "Journal of Development Economics". )," CARF F-Series CARF-F-051, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    10. Lee, Jeong-Joon & Sawada, Yasuyuki, 2010. "Precautionary saving under liquidity constraints: Evidence from rural Pakistan," Journal of Development Economics, Elsevier, vol. 91(1), pages 77-86, January.
    11. Yasuyuki Sawada & Satoshi Shimizutani, 2005. "Are People Insured Against Natural Disasters? Evidence from the Great Hanshin-Awaji (Kobe) Earthquake in 1995," CIRJE F-Series CIRJE-F-314, CIRJE, Faculty of Economics, University of Tokyo.
    12. Orazio P. Attanasio, 1998. "Consumption Demand," NBER Working Papers 6466, National Bureau of Economic Research, Inc.
    13. Eric V. Edmonds, 2004. "Does Illiquidity Alter Child Labor and Schooling Decisions? Evidence from Household Responses to Anticipated Cash Transfers in South Africa," NBER Working Papers 10265, National Bureau of Economic Research, Inc.
    14. Jacob L. Vigdor, 2004. "Liquidity Constraints and Housing Prices: Theory and Evidence from the VA Mortgage," NBER Working Papers 10611, National Bureau of Economic Research, Inc.
    15. Attanasio, Orazio P., 1995. "The intertemporal allocation of consumption: theory and evidence," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 42(1), pages 39-56, June.
    16. Skoufias, Emmanual & Parker, Susan W., 2002. "Labor market shocks and their impacts on work and schooling," FCND briefs 129, International Food Policy Research Institute (IFPRI).
    17. Jinnat Ara & Dipanwita Sarkar & Jayanta Sarkar, 2021. "Like mother like daughter? Occupational mobility among children under asset transfer program in Bangladesh," QuBE Working Papers 061, QUT Business School.
    18. Krisztina Kis-Katos, 2012. "Gender differences in work-schooling decisions in rural North India," Review of Economics of the Household, Springer, vol. 10(4), pages 491-519, December.
    19. Sonia Bhalotra, 2007. "Is Child Work Necessary?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(1), pages 29-55, February.
    20. Edmonds, Eric V., 2008. "Child Labor," Handbook of Development Economics, in: T. Paul Schultz & John A. Strauss (ed.), Handbook of Development Economics, edition 1, volume 4, chapter 57, pages 3607-3709, Elsevier.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:deveco:v:44:y:2006:i:4:p:465-499. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/idegvjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.