This paper characterizes the pattern of intergenerational transfers that emerges in an altruistic model of the family when children's effort is explicitly made endogenous and parents have imperfect information on the stochastic income realizations of their children. It is shown that, if parents...

Although a growing theoretical literature points to credit constraints asan important source of inefficiently high child labor, little work has been done to assess its empirical relevance. Using panel data from Tanzania, the authors find that households respond to transitory income shocks by...

We use firm-level, cross-county data from Investment Climate surveys in 49 developing countries to investigate an important channel through which informality can affect productivity: access to credit and external finance. Informality is measured as self-reported lack of tax compliance in a...

We develop a simple bargaining framework of corruption where firms pay bribes to avoid regulation. Consistent with this setup, we find that time spent bargaining with bureaucrats and amount of bribe payments are positively correlated, but that this association is weaker (and, thus, corruption...

By explicitly accounting for the interaction between importers and corrupt customs officials, the author argues that setting trade tariff rates at a uniform level, limits public official's ability to extract bribes from importers. If the government's main objective is to raise revenues at the...

This paper analyses whether the presence of barriers to international trade and capital flows is associated with higher corruption. The evidence suggests that the main impact of trade barriers on corruption comes through the incentive to collusive behaviors between individuals and customs...

While some recent evidence suggests that more decentralization is associated with reduced corruption, no empirical work has examined whether different types of decentralization have differential effects on corruption. The theoretical literature has emphasized that expenditure decentralization...

This paper examines the relationship between child labor and access to credit at a cross-country 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...

This paper examines the relationship between household income shocks and child labor. In particular, we investigate the extent to which transitory income shocks lead to increases in child labor and whether household access to credit mitigates the effects of these shocks. Using panel data from a...

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...