DP7890 School Proximity and Child Labor: Evidence from Rural Tanzania
Is improved school accessibility an effective policy tool for reducing child labor in developing countries? We address this question using micro data from rural Tanzania and a regression strategy that attempts to control for non-random location of households around schools as well as classical and nonclassical measurement error in self-reported distance to school. Consistent with a simple model of child
labor supply, but contrary to what appears to be a widespread perception, our analysis shows that school proximity leads to a rise in school attendance but no fall in child labor.