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Does Having a Newborn Child Affect Income Diversification Opportunities?: Evidence from the Peruvian Young Lives Study

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  • Escobal, Javier
  • Suárez, Pablo
  • Huttly, Sharon
  • Lanata, Claudio
  • Penny, Mary

Abstract

The ability of households to diversify their income sources is strongly related to their capacity to cope in times of pressure, such as during economic crises. This is particularly so among the poor, who often do not have adequate resources on which to draw when under such pressures. Households with a newborn child face two additional constraints: the income-generating capability of mothers can be moderately or severely reduced; and households may have to spend more because of the newborn child. Very little is known about whether income diversification strategies are constrained for such households, but such constraints could have serious implications for child well-being at a critical time in the child’s development. This paper describes the income diversification patterns of Peruvian households with young children (aged between 6 and 18 months). Comparisons are made with the overall population in Peru, and with the income diversification patterns of households in the same communities who have no young children. The authors explore links between income diversification strategies, household assets, the external environment and child well-being. Their findings give empirical support for policy or project interventions aimed at increasing income-generating opportunities for Peruvian women with a newborn child.

Suggested Citation

  • Escobal, Javier & Suárez, Pablo & Huttly, Sharon & Lanata, Claudio & Penny, Mary, 2005. "Does Having a Newborn Child Affect Income Diversification Opportunities?: Evidence from the Peruvian Young Lives Study," MPRA Paper 56476, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:56476
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    References listed on IDEAS

    as
    1. Escobal, Javier, 2001. "The Determinants of Nonfarm Income Diversification in Rural Peru," World Development, Elsevier, vol. 29(3), pages 497-508, March.
    2. Lanjouw, Peter & Quizon, Jaime & Sparrow, Robert, 2001. "Non-agricultural earnings in peri-urban areas of Tanzania: evidence from household survey data," Food Policy, Elsevier, vol. 26(4), pages 385-403, August.
    3. Filmer, Deon & Pritchett, Lant, 1998. "Estimating wealth effects without expenditure data - or tears : with an application to educational enrollments in states of India," Policy Research Working Paper Series 1994, The World Bank.
    4. Bigsten, Arne & Kayizzi-Mugerwa, Steve, 1992. "Adaptation and distress in the urban economy: A study of Kampala households," World Development, Elsevier, vol. 20(10), pages 1423-1441, October.
    5. Zimmerman, Frederick J. & Carter, Michael R., 2003. "Asset smoothing, consumption smoothing and the reproduction of inequality under risk and subsistence constraints," Journal of Development Economics, Elsevier, vol. 71(2), pages 233-260, August.
    6. Escobal, Javier & Saavedra, Jaime & Suárez, Pablo, 2005. "The Interaction of Public Assets, Private Assets and Community Characteristics and its Effect on Early Childhood Height-for-Age in Peru," MPRA Paper 56478, University Library of Munich, Germany.
    7. Thomas Reardon & J. Edward Taylor & Kostas Stamoulis & Peter Lanjouw & Arsenio Balisacan, 2000. "Effects of Non‐Farm Employment on Rural Income Inequality in Developing Countries: An Investment Perspective," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 266-288, May.
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    Cited by:

    1. Santiago Cueto & Javier Escobal & Javier Escobal & Patricia Ames & Mary Penny, 2012. "¿Quién se queda atrás?: resultados iniciales del estudio Niños del Milenio: tercera ronda de encuestas en el Perú," Documentos de Trabajo (Niños del Milenio-GRADE) ninosm3r, Niños del Milenio (Young Lives).

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    More about this item

    Keywords

    Peru; household income; household composition;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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