The Impact of Income and Non-Income Shocks on Child Labor

Evidence from a Panel Survey of Tanzania

Amarakoon Bandara, Rajeev Dehejia, Shaheen Lavie-Rouse

Research output: Contribution to journalArticle

Abstract

This paper investigates the impact of income and non-income shocks on child labor using a model in which the household maximizes utility from consumption as well as human capital development of the child. We also investigate if access to credit and household assets act as buffers against transitory shocks. Our results indicate significant effects of agricultural shocks on the child's overall work hours and agricultural work hours, with higher effects for boys. Crop shocks also have significant adverse effects on school attendance, with girls experiencing a more-than 70% increase in the probability of quitting schooling. The results also indicate that access to a bank account has a buffering effect on the impact of shocks on child hunger. Having a bank account reduces both male child labor and household work hours of a girl child. While assets reduce working hours of girls, we do not find it having a significant effect on boys. We also do not see assets to act as a buffer against shocks.

Original languageEnglish (US)
Pages (from-to)218-237
Number of pages20
JournalWorld Development
Volume67
DOIs
StatePublished - Mar 1 2015

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child labor
Tanzania
income
assets
evidence
bank
school attendance
working hours
hunger
human capital
buffering
credit
effect
Child labor
Income
Income shocks
education
crop
household
Assets

Keywords

  • Agricultural shocks
  • Buffer stocks
  • Child labor
  • Consumption smoothing

ASJC Scopus subject areas

  • Economics and Econometrics
  • Development
  • Geography, Planning and Development
  • Sociology and Political Science

Cite this

The Impact of Income and Non-Income Shocks on Child Labor : Evidence from a Panel Survey of Tanzania. / Bandara, Amarakoon; Dehejia, Rajeev; Lavie-Rouse, Shaheen.

In: World Development, Vol. 67, 01.03.2015, p. 218-237.

Research output: Contribution to journalArticle

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