How Does Adoption of Mobile Money Technology Affect Child Labour and School Enrolment?
Ajefu, Joseph B.
African Economic Research Consortium
This paper analyses the impact of adoption of mobile money services on child labour and educational outcomes in Tanzania using an instrumental variables strategy. We identify heterogenous impacts across child’s gender and age, and we find a positive and significant effect of mobile money adoption on educational outcomes, but the results reveal a negative and significant impact on child labour in the farm and households. Moreover, using mediation analysis, we identify remittances and education expenditure as the potential pathways through which mobile money adoption affects child labour and educational outcomes. Overall, the results suggest that policies that increase mobile money adoption can be effective in improving child educational outcomes and lead to a decline in the incidence of child labour.