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dc.titleChild Labor, Rainfall Shocks, and Financial Inclusion: Evidence from Rural Households
dc.contributor.authorBernal, Carolina
dc.contributor.authorVlaicu, Razvan
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageColombia
dc.date.available2023-08-11T00:08:00
dc.date.issue2023-08-11T00:08:00
dc.description.abstractThis paper examines how rural households cope with climate change related rainfall shocks by re-allocating childrens time between domestic activities and school attendance. Households affected by an unanticipated rainfall shock face an inter-temporal trade-off between current household income and future potential earnings. Financial inclusion may mitigate or exacerbate the human capital impacts of rainfall shocks depending on whether it relaxes or constrains household budgets. The data come from a three-round panel household survey in rural Colombia collected between 2010-2016. The main findings are that rainfall shocks induce households to choose immediate benefits over long-run investments in education by increasing the incidence of child labor and household chores at the expense of school attendance. Over-indebtedness through pre-existing formal loans reinforces the likelihood that a child works due to rainfall shocks, whereas asset insurance, foreign remittances, and natural disaster aid mitigate or eliminate the shock-induced shift toward domestic activities and away from schooling.
dc.format.extent60
dc.identifier.doihttp://dx.doi.org/10.18235/0005058
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Child-Labor-Rainfall-Shocks-and-Financial-Inclusion-Evidence-from-Rural-Households.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectChild Labor
dc.subjectRainfall
dc.subjectChildren
dc.subjectEducational Institution
dc.subjectPopulation Aging
dc.subjectFinancial Inclusion
dc.subjectLabor
dc.subjectMunicipal Government
dc.subjectEconomy
dc.subjectBank Loan
dc.subjectEducation
dc.subjectRural Area
dc.subject.jelcodeD14 - Household Saving; Personal Finance
dc.subject.jelcodeJ13 - Fertility • Family Planning • Child Care • Children • Youth
dc.subject.jelcodeJ22 - Time Allocation and Labor Supply
dc.subject.jelcodeO15 - Human Resources • Human Development • Income Distribution • Migration
dc.subject.jelcodeQ54 - Climate • Natural Disasters and Their Management • Global Warming
dc.subject.keywordsChild Labor;human capital;Rainfall shocks;climate change;financial inclusion;Rural households;Schooling
idb.identifier.pubnumberIDB-WP-01461
idb.operationRG-E1885
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