Children, Time and Poverty: The Impact on Children of Easing Poor Families' Credit Constraints

Abstract

Young Lives is an international longitudinal study on childhood poverty and policy in Ethiopia, India (Andhra Pradesh), Peru and Vietnam. This paper draws on examples from Young Lives quantitative and qualitative research and analyses to illustrate how household decisions and the policy context can underpin children's role as economic actors. It focuses on how credit constraints can influence household decisions to either invest in children's schooling or engage them in economic activities, with potential medium- to long-term repercussions for their wellbeing and level of human capital accumulation. Additionally, the paper briefly explores the contexts under which children's agency, including combining school with work activities, can be positive for their own development through greater socialisation, strengthening of useful skills, interaction with family members, as well as contributing to their household's livelihood strategies.