Child Labor, Income Shocks, and Access to Credit

Although a growing theoretical literature points to credit constraints as an important source of inefficiently high child labor, little work has been done to assess its empirical relevance. Using panel data from Tanzania, the authors find that hous...

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Main Authors:	Beegle, Kathleen, Dehejia, Rajeev H., Gatti, Roberta
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACCOUNT ADULT MORTALITY CHILD LABOR CHILD LABOR ISSUES CONDITIONS FOR CHILDREN CREDIT RATIONING CROWDING CROWDING OUT DURABLE GOODS ECONOMIC ACTIVITY ECONOMIC IMPACT ECONOMICS ECONOMISTS EMPIRICAL RESEARCH EMPIRICAL STUDIES EMPLOYMENT FINANCIAL MARKETS FORMAL EDUCATION HUMAN DEVELOPMENT INCOME INSURANCE LABOR MARKETS LABOR SUPPLY LEISURE LIVING STANDARDS MARKET FAILURES OLDER CHILDREN OLDER SIBLINGS ORPHANHOOD PARENTAL EDUCATION PARENTS POLICY RESEARCH POLITICAL ECONOMY SAVINGS SCHOOL ATTENDANCE THEORETICAL MODELS WAGES WORKING CHILDREN YOUNGER CHILDREN CHILD LABOR ELIMINATION ACCESS TO CREDIT INCOME SHOCK CREDIT MARKETS TANZANIA ECONOMIC CONDITIONS YOUNGER CHILDREN CHILD LABOR ELIMINATION
Online Access:	http://documents.worldbank.org/curated/en/2003/05/2874539/child-labor-income-shocks-access-credit http://hdl.handle.net/10986/18222

id	okr-10986-18222
recordtype	oai_dc
spelling	okr-10986-182222021-04-23T14:03:41Z Child Labor, Income Shocks, and Access to Credit Beegle, Kathleen Dehejia, Rajeev H. Gatti, Roberta ACCOUNT ADULT MORTALITY CHILD LABOR CHILD LABOR ISSUES CONDITIONS FOR CHILDREN CREDIT RATIONING CROWDING CROWDING OUT DURABLE GOODS ECONOMIC ACTIVITY ECONOMIC IMPACT ECONOMICS ECONOMISTS EMPIRICAL RESEARCH EMPIRICAL STUDIES EMPLOYMENT FINANCIAL MARKETS FORMAL EDUCATION HUMAN DEVELOPMENT INCOME INSURANCE LABOR MARKETS LABOR SUPPLY LEISURE LIVING STANDARDS MARKET FAILURES OLDER CHILDREN OLDER SIBLINGS ORPHANHOOD PARENTAL EDUCATION PARENTS POLICY RESEARCH POLITICAL ECONOMY SAVINGS SCHOOL ATTENDANCE THEORETICAL MODELS WAGES WORKING CHILDREN YOUNGER CHILDREN CHILD LABOR ELIMINATION ACCESS TO CREDIT INCOME SHOCK CREDIT MARKETS TANZANIA ECONOMIC CONDITIONS YOUNGER CHILDREN CHILD LABOR ELIMINATION Although a growing theoretical literature points to credit constraints as an important source of inefficiently high child labor, little work has been done to assess its empirical relevance. Using panel data from Tanzania, the authors find that households respond to transitory income shocks by increasing child labor, but that the extent to which child labor is used as a buffer is lower when households have access to credit. These findings contribute to the empirical literature on the permanent income hypothesis by showing that credit-constrained households actively use child labor to smooth their income. Moreover, they highlight a potentially important determinant of child labor and, as a result, a mechanism that can be used to tackle it. 2014-05-09T19:20:05Z 2014-05-09T19:20:05Z 2003-06 http://documents.worldbank.org/curated/en/2003/05/2874539/child-labor-income-shocks-access-credit http://hdl.handle.net/10986/18222 English en_US Policy Research Working Paper;No. 3075 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa Tanzania
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCOUNT ADULT MORTALITY CHILD LABOR CHILD LABOR ISSUES CONDITIONS FOR CHILDREN CREDIT RATIONING CROWDING CROWDING OUT DURABLE GOODS ECONOMIC ACTIVITY ECONOMIC IMPACT ECONOMICS ECONOMISTS EMPIRICAL RESEARCH EMPIRICAL STUDIES EMPLOYMENT FINANCIAL MARKETS FORMAL EDUCATION HUMAN DEVELOPMENT INCOME INSURANCE LABOR MARKETS LABOR SUPPLY LEISURE LIVING STANDARDS MARKET FAILURES OLDER CHILDREN OLDER SIBLINGS ORPHANHOOD PARENTAL EDUCATION PARENTS POLICY RESEARCH POLITICAL ECONOMY SAVINGS SCHOOL ATTENDANCE THEORETICAL MODELS WAGES WORKING CHILDREN YOUNGER CHILDREN CHILD LABOR ELIMINATION ACCESS TO CREDIT INCOME SHOCK CREDIT MARKETS TANZANIA ECONOMIC CONDITIONS YOUNGER CHILDREN CHILD LABOR ELIMINATION
spellingShingle	ACCOUNT ADULT MORTALITY CHILD LABOR CHILD LABOR ISSUES CONDITIONS FOR CHILDREN CREDIT RATIONING CROWDING CROWDING OUT DURABLE GOODS ECONOMIC ACTIVITY ECONOMIC IMPACT ECONOMICS ECONOMISTS EMPIRICAL RESEARCH EMPIRICAL STUDIES EMPLOYMENT FINANCIAL MARKETS FORMAL EDUCATION HUMAN DEVELOPMENT INCOME INSURANCE LABOR MARKETS LABOR SUPPLY LEISURE LIVING STANDARDS MARKET FAILURES OLDER CHILDREN OLDER SIBLINGS ORPHANHOOD PARENTAL EDUCATION PARENTS POLICY RESEARCH POLITICAL ECONOMY SAVINGS SCHOOL ATTENDANCE THEORETICAL MODELS WAGES WORKING CHILDREN YOUNGER CHILDREN CHILD LABOR ELIMINATION ACCESS TO CREDIT INCOME SHOCK CREDIT MARKETS TANZANIA ECONOMIC CONDITIONS YOUNGER CHILDREN CHILD LABOR ELIMINATION Beegle, Kathleen Dehejia, Rajeev H. Gatti, Roberta Child Labor, Income Shocks, and Access to Credit
geographic_facet	Africa Tanzania
relation	Policy Research Working Paper;No. 3075
description	Although a growing theoretical literature points to credit constraints as an important source of inefficiently high child labor, little work has been done to assess its empirical relevance. Using panel data from Tanzania, the authors find that households respond to transitory income shocks by increasing child labor, but that the extent to which child labor is used as a buffer is lower when households have access to credit. These findings contribute to the empirical literature on the permanent income hypothesis by showing that credit-constrained households actively use child labor to smooth their income. Moreover, they highlight a potentially important determinant of child labor and, as a result, a mechanism that can be used to tackle it.
format	Publications & Research :: Policy Research Working Paper
author	Beegle, Kathleen Dehejia, Rajeev H. Gatti, Roberta
author_facet	Beegle, Kathleen Dehejia, Rajeev H. Gatti, Roberta
author_sort	Beegle, Kathleen
title	Child Labor, Income Shocks, and Access to Credit
title_short	Child Labor, Income Shocks, and Access to Credit
title_full	Child Labor, Income Shocks, and Access to Credit
title_fullStr	Child Labor, Income Shocks, and Access to Credit
title_full_unstemmed	Child Labor, Income Shocks, and Access to Credit
title_sort	child labor, income shocks, and access to credit
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2003/05/2874539/child-labor-income-shocks-access-credit http://hdl.handle.net/10986/18222
_version_	1764439073645133824

Child Labor, Income Shocks, and Access to Credit

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