Discussion paper

DP4881 Child Labour, Crop Shocks and Credit Constraints

This paper examines the relationship between household income shocks and child labour. In particular, we investigate the extent to which transitory income shocks lead to increases in child labour and whether household access to credit mitigates the effects of these shocks. Using data from a household panel survey in Tanzania, we find that both relationships are significant. We provide evidence that credit constraints could plausibly account for our results, but also discuss alternative interpretations.


Dehejia, R, R Gatti and K Beegle (2005), ‘DP4881 Child Labour, Crop Shocks and Credit Constraints‘, CEPR Discussion Paper No. 4881. CEPR Press, Paris & London. https://cepr.org/publications/dp4881