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Natural Disaster and Child Labor: Evidence from Indonesian Earthquake

Hee-Seung, Yang / Yoonjei, Dong

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Abstract

Natural disasters can bring considerable damages to households in terms of casualties of household members, destruction of houses, and loss of physical assets. We examine the impact of an earthquake in Indonesia on children’s school and work activities and how the effect differs by access to credit. We find that the earthquake decreases education and increases child labor, but the effect is stronger for households with access to credit. Our finding indicates the complementary effect between credit and child labor and suggests the need for policies to increase educational investment when providing credits to households recovering from a shock.

Issue Date
2020-02
Publisher
KDI School of Public Policy and Management
Keywords
Natural disaster; Earthquake; Education; Child labor; Credit; Indonesia
Pages
17
Series Title
KDI School Working Paper 20-05
URL
http://ssrn.com/abstract=3542086
Language
eng
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