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Child labor among farm households in Mozambique and the role of reciprocal adult labor

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  • Fumagalli, Laura
  • Martin, Thomas

Abstract

We test the impact of a reciprocal adult labor program, Ajuda Mútua (AM), on child labor and schooling. AM was introduced into the province of Nampula in Mozambique, an area where farm production relies on child labor, potentially due to labor and financial market failures. Using difference in differences, we estimate that AM reduces child labor by eight percentage points. We argue that AM reduces child labor by providing low-cost adult labor and potentially increasing farm productivity. We benchmark the AM results against the impact of Village Saving and Loan Associations (VSLA) and AM and VSLA in combination (VAM). Neither VSLA nor VAM reduce child labor. If credit is used in a way that increases labor demand beyond what can be accommodated by AM labor, child labor may increase. We conclude that addressing labor market failures may be more successful at reducing child labor than addressing financial market failures. Results on schooling are mixed.

Suggested Citation

  • Fumagalli, Laura & Martin, Thomas, 2023. "Child labor among farm households in Mozambique and the role of reciprocal adult labor," World Development, Elsevier, vol. 161(C).
    • Handle: RePEc:eee:wdevel:v:161:y:2023:i:c:s0305750x22002856
    DOI: 10.1016/j.worlddev.2022.106095
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    Cited by:

    1. Bang, James & Mitra, Aniruddha & Abbas, Faisal, 2023. "Remittances and Child Labor in Pakistan: A Tale of Complementarities," GLO Discussion Paper Series 1285, Global Labor Organization (GLO).

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    More about this item

    Keywords

    Child labor; Schooling; Labor markets; Financial markets; Mozambique;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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