Household Shocks and Children's Labour: Panel Survey Evidence from Tanzania

Abstract

Household shocks can significantly affect a family's well-being, often leading them to resort to child labour as a coping mechanism. However, child labour not only impedes a country's progress but also detrimentally affects children's welfare. In this study, we investigated the effects of household shocks on child labour in Tanzania, utilising data from two waves of the National Panel survey conducted in 2014–15 and 2019–20. The study employed a fixed-effects regression model to examine the effects of household shocks on child labour measured by child hours of work. The findings of this study reveal that both climate and food price shocks correlate with increased child labour prioritising hours. We also observed that child school attendance acts as a deterrent to child labour. To address these challenges, governments should prioritize implementing social safety nets and assistance programs to alleviate the impact of climate and food price shocks on vulnerable households.To add on this, there is a pressing need for policymakers to focus on expanding access to and enhancing the quality of education, particularly in rural areas where child labour rates are disproportionately higher. Such measures have the potential to effectively reduce child labour incidence and simultaneously improve schooling outcomes.