Arbeitspapier
Household Preferences and Child Labor in Rural Ethiopia
This paper revisits the causes behind child labor supply by focusing on an aspect that has received little attention: the link between the household head's risk and time preferences and observed child labor supply. We develop a theoretical model and empirically test for this causality using data from the seventh round of the Ethiopian Rural Household Survey. We find child labor to be increasing in both higher adult discount rates and higher degrees of risk aversion, and this finding is robust across alternative empirical approaches. Higher discount rates favor current consumption which is financed in part by child labor income while high risk aversion to future income (due to either low or uncertain returns to education) favor child labor at the expense of schooling.
- Sprache
-
Englisch
- Erschienen in
-
Series: IZA Discussion Papers ; No. 14062
- Klassifikation
-
Wirtschaft
Field Experiments
Agricultural Labor Markets
Economywide Country Studies: Africa
- Thema
-
risk and time preferences
education
child labor
Ethiopia
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Basu, Arnab K.
Dimova, Ralitza
- Ereignis
-
Veröffentlichung
- (wer)
-
Institute of Labor Economics (IZA)
- (wo)
-
Bonn
- (wann)
-
2021
- Handle
- Letzte Aktualisierung
- 10.03.2025, 11:44 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Basu, Arnab K.
- Dimova, Ralitza
- Institute of Labor Economics (IZA)
Entstanden
- 2021