Household Preferences and Child Labor in Rural Ethiopia

This paper revisits the causes behind child labor supply by focusing on an aspect that has received little attention: link between household head's risk and time preferences observed supply. We develop a theoretical model empirically test for this causality using data from seventh round of Ethiopian Rural Household Survey. find to be increasing in both higher adult discount rates degrees aversion, finding is robust across alternative empirical approaches. Higher favor current consumption which financed part income while high aversion future (due either low or uncertain returns education) at expense schooling.