EconPapers    
Economics at your fingertips  
 

Child Labor: The Role of Income Variability and Access to Credit Across Countries

Rajeev Dehejia and Roberta Gatti ()

No 9018, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper examines the relationship between child labor and access to credit at a cross-country level. Even though this link is theoretically central to child labor, so far there has been little work done to assess its importance empirically. We measure child labor as a country aggregate, and credit constraints are proxied by the extent of financial development. These two variables display a strong negative relationship, which we show is robust to selection on observables (by controlling for a wide range of variables such as GDP per capita, urbanization, initial child labor, schooling, fertility, legal institutions, inequality, and openness, and by allowing for a nonparametric functional form), and to selection on unobservables (by allowing for fixed effects). We find that the magnitude of the association between our proxy of access to credit and child labor is large in the sub-sample of poor countries. Moreover, in the absence of developed financial markets, households appear to resort substantially to child labor in order to cope with income variability. This evidence suggests that policies aimed at widening households' access to credit could be effective in reducing the extent of child labor.

JEL-codes: J22 G1 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
Date: 2002-06
Note: LS
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (29) Track citations by RSS feed

Published as Dehejia, Rajeev H. and Roberta Gatti. "Child Labor: The Role Of Financial Development And Income Variability Across Countries," Economic Development and Cultural Change, 2005, v53(4,Jul), 913-932.

Downloads: (external link)
http://www.nber.org/papers/w9018.pdf (application/pdf)

Related works:
Working Paper: Child labor: The role of income variability and access to credit across countries (2002) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:nbr:nberwo:9018

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w9018

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc
Address: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Contact information at EDIRC.
Series data maintained by ().

 
Page updated 2014-10-24
Handle: RePEc:nbr:nberwo:9018