Working Paper: NBER ID: w10088
Authors: 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.
Keywords: Child Labor; Income Shocks; Credit Constraints; Tanzania
JEL Codes: J82; J22; G20; O16
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| transitory income shocks (J69) | child labor hours (J82) |
| credit constraints (E51) | child labor hours (J82) |
| transitory income shocks + collateralizable assets (G59) | child labor hours (J82) |