Social Interactions, Spatial Dependence, and Children's Activities: Evidence From India

After controlling for a wide range of determinants of children's participation in work, school, and idleness, we examine whether or not there exists spatial dependence in children's activities in neighboring Indian districts. We find that correlation among neighboring districts' unobservables play a significant role in determining the proportion of children who attend school, work, and are idle in a district. We attribute a large part of spatially correlated unobservables to common social attitudes, beliefs, and norms with respect to children's activities in neighboring districts. This suggests implementing policies that not only target the quality and quantity of education, but also change social attitudes in favor of education and against idleness and child labor.