Are Children From Financially Included Households Less Likely to Work?

Sylvanus Gaku

Article history:
Received: 10 July, 2022
Accepted 10 May, 2023


Several factors including poverty, productivity shocks, labor market imperfections and parental education account for the incidence of child labour. However, little is known about the impact of financial inclusion on children’s propensity to work in the Ghanaian context. Using ordinary least squares and instrumental variable regressions, this study quantifies the effect of household financial inclusion on the tendency of children to work. This study finds that children from financially included households are less likely to work compared to their counterparts in financially excluded households. This negative and statistically significant link between financial inclusion and children’s tendency to work becomes strong after assuaging endogeneity concerns.

child labour, poverty, IV regression, financial inclusion

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