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Abstract:
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This paper looks at the relationship between parents' access to credit and children's labor. The study uses national household survey data for Guatemala that includes child labor statistics alongside information regarding applications for loans to more accurately measure the overall effect of access to credit on child labor. The findings point to a relationship between household access to credit and children's likelihood and propensity to work. Children in households that have access to credit are less likely to work and tend to work fewer hours than those in households without access to credit. These results lend support to the idea that increasing access to credit can be an important part of reducing child labor. In addition, the study also suggests a relationship between household applications for loans and child labor. Those households that apply for loans are more likely to have children working than those households that do not suggesting that services and education should be targeted to those applying for loans. |