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How Does Credit Access Affect Children's Time Allocation?: Evidence from Rural India

Author

Listed:
  • Fuwa Nobuhiko

    (Waseda University)

  • Ito Seiro

    (Institute of Developing Economies)

  • Kubo Kensuke

    (Institute of Developing Economies and Indian Statistical Institute, Delhi)

  • Kurosaki Takashi

    (Hitotsubashi University)

  • Sawada Yasuyuki

    (University of Tokyo)

Abstract

Using a unique dataset obtained from rural Andhra Pradesh, India that contains direct observations of household access to credit and detailed time use, results of this study indicate that credit market failures result in a substantial reallocation of time use pattern by children, leading to a significant increase in remunerative work and a similarly significant decrease in leisure time. While the direct impact on schooling time per se does not appear to be large, longer work and shorter leisure could arguably constrain effective learning opportunities of children, hampering human capital formation.

Suggested Citation

  • Fuwa Nobuhiko & Ito Seiro & Kubo Kensuke & Kurosaki Takashi & Sawada Yasuyuki, 2012. "How Does Credit Access Affect Children's Time Allocation?: Evidence from Rural India," Journal of Globalization and Development, De Gruyter, vol. 3(1), pages 1-28, June.
    • Handle: RePEc:bpj:globdv:v:3:y:2012:i:1:n:4
    DOI: 10.1515/1948-1837.1095
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    Cited by:

    1. Tran Thi Thanh Tu & Nguyen Quoc Viet & Hoang Huu Loi, 2015. "Determinant of Access to Rural Credit and Its Effect on Living Standard: Case Study about Poor Households in Northwest, Vietnam," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 6(2), pages 218-230, April.
    2. Muhammad Jehangir Khan, 2019. "School Quality and Parental Schooling Decisions for Their Children: Public and Private Schools in Rural Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 58(2), pages 177-202.
    3. Abid Hussain & Muhammad Jehangir Khan & Iftikhar Ahmad, 2016. "Impact of Credit on Education and Healthcare Spending in Rural Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(4), pages 853-870.
    4. Alessandro Cigno, 2010. "How to Deal with Covert Child Labour, and Give Children an Effective Education, in a Poor Developing Country: An Optimal Taxation Problem with Moral Hazard," CESifo Working Paper Series 3077, CESifo.

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    More about this item

    Keywords

    child labor; schooling; credit constraint; household models; rural India;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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