Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/216323 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13011
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Using data from the Rural Ethiopian Household Survey, which contains a behavioral module, we explore the link between adult risk and time preferences and the incidence and the intensity of child labor. While as expected child labor at both the extensive and the intensive margin is a result of high time discount rates, the narrative behind the positive relationship between adult risk aversion and child labor is more complex. While child labor is clearly the result of risk aversion, more risk averse parents react to their uncertain environments by combining child labor and work as opposed to substituting schooling for child labor.
Subjects: 
risk and time preferences
education
child labor
Ethiopia
JEL: 
C93
J43
O55
Document Type: 
Working Paper

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