This paper examines the relationship between child labor and access to credit at a crosscountry level. Even though this link is theoretically central to child labor, so far there has been little work done to assess its importance empirically. We measure child labor as a country aggregate, and...

Using four rounds of panel household data from the Kagera region of Tanzania, we show that transitory income shocks ¨C measured by the value of crop lost by farming households ¨C lead to significantly increased child labor. A one standard deviation increase in the shock is associated with a...