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Kathleen Beegle, Rajeev Dehejia, Roberta Gatti
NBER Working Paper No. 10088
Issued in November 2003
NBER Program(s): LS
CH
---- 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.
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