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Impact of Microfinance on Schooling: Evidence from Poor Rural Households in Bolivia

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Author Info

  • Maldonado, Jorge H.
  • González-Vega, Claudio

Abstract

Summary Channels for the influence of microfinance programs on a rural household's demand for schooling are identified: income growth, risk management, child-labor demand, gender empowerment, and parent information. Within a random-utility framework, a model of household consumption, investment in education, and borrowing suggests determinants at the individual, household and regional levels of the probability of schooling gaps. Using data from two surveys of households of clients of microfinance organizations in Bolivia, regression models examine determinants of schooling gaps. Inferences about otherwise positive microfinance impacts identify potential negative effects of increased child-labor demand, which challenge usual assumptions and pose dilemmas for policymakers.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 36 (2008)
Issue (Month): 11 (November)
Pages: 2440-2455

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Handle: RePEc:eee:wdevel:v:36:y:2008:i:11:p:2440-2455

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: Latin America Bolivia microfinance impact schooling gaps child labor rural households;

References

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  1. Heady, Christopher, 2003. "The Effect of Child Labor on Learning Achievement," World Development, Elsevier, vol. 31(2), pages 385-398, February.
  2. Bardhan, Pranab & Udry, Christopher, 1999. "Development Microeconomics," OUP Catalogue, Oxford University Press, number 9780198773719.
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  13. de Janvry, Alain & Finan, Frederico & Sadoulet, Elisabeth & Vakis, Renos, 2006. "Can conditional cash transfer programs serve as safety nets in keeping children at school and from working when exposed to shocks?," Journal of Development Economics, Elsevier, vol. 79(2), pages 349-373, April.
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Citations

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Cited by:
  1. Bredl, Sebastian, 2012. "Child Quality and Child Quantity: Evidence from Bolivian Household Surveys," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62065, Verein für Socialpolitik / German Economic Association.
  2. Paolo Casini & Lore Vandewalle, 2011. "Public Good Provision in Indian Rural Areas: the Returns to Collective Action by Microfinance Groups," Working Papers 1119, University of Namur, Department of Economics.
  3. Guizar-Mateos, Isai & Miranda, Mario J. & Gonzalez-Vega, Claudio, 2013. "The Role of Credit and Deposits in the Dynamics of Technology Decisions and Poverty Traps," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149860, Agricultural and Applied Economics Association.
  4. Kasat, Puja, 2010. "Innovative Approaches to Developmental Microfinance in India," MPRA Paper 22238, University Library of Munich, Germany.
  5. Congdon Fors, Heather, 2008. "Child Labor: A Review of Recent Theory and Evidence with Policy Implications," Working Papers in Economics 324, University of Gothenburg, Department of Economics.
  6. World Bank, 2012. "A Gender (R)evolution in the Making? Expanding Women's Economic Opportunities in Central America : A Decade in Review," World Bank Other Operational Studies 12468, The World Bank.
  7. Jing You & Samuel Annim, 2013. "The impact of microcredit on child education: quasi-experimental evidence from rural China," Brooks World Poverty Institute Working Paper Series 18313, BWPI, The University of Manchester.

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