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Child Labor

The Role of Financial Development and Income Variability across Countries

Bibliographic Data

ID7756980
AuthorsRajeev Dehejia (0000-0002-0927-429X, National Bureau of Economic Research), Rajeev H Dehejia, Roberta Gatti (Centre for Economic Policy Research)
Year2005
Volume53
Issue4
Pages913-932
Publication date2005-07-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueEconomic Development and Cultural Change (JOURNAL)
Journal identifiersISSN: 0013-0079 • E-ISSN: 1539-2988
PublisherUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/428714
OpenAlexW1967489424
LanguageEN
Citations received22
References cited30

In this article, we examine the link between child labor and financial development using cross‐country data. We show that child labor and financial development display a significant negative relationship, which is particularly strong in the sample of low‐income countries and is robust for a wide range of specifications and estimators, including fixed‐effects and instrumental variables. We identify a plausible channel through which financial development affects child labor, as we find that income variability has a sizable, positive impact on child labor in countries where financial markets are underdeveloped, although this is not the case when financial markets are developed. Our results suggest that policies aimed at widening access to credit could be effective in reducing the extent of child labor

Demographic economics · Developing country · Econometrics · Economic growth · Economics · Instrumental variable · Labour economics · Sample (material) · Child Nutrition and Water Access · Microfinance and Financial Inclusion · Poverty, Education, and Child Welfare

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Unique citing works22
Citations per year1,16
Citation span2007 - 2026 (20)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 22

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