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Microinsurance and child labour an impact evaluation of NRSP's (Pakistan) microinsurance innovation

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  • Frölich, Markus.
  • Landmann, Andreas
  • Midkiff, Hillery.
  • Breda, Valerie.

Abstract

National Rural Support Programme (NRSP) of Pakistan participated in the ILO's Microfinance for Decent Work (MF4DW) action research programme from 2008-2012. As part of this experimental research, NRSP launched and tested an extended microinsurance product (health and accidental death) covering extra- nuclear family members of the same household in order to see if there was a positive impact on the reduction of child labour among 2,097 client households, using a target versus control group methodology. Econometric analysis of the panel dataset collected from control and target groups at five equally spaced intervals show that NRSP's innovation can be linked to increased insurance coverage and usage, as well as decreased child labour incidence. Our findings remain robust to different methods, specifications and corrections for selection bias. However, we did not find significant treatment effects on school attendance, expenses (hospital) and household welfare (PPI score).

Suggested Citation

  • Frölich, Markus. & Landmann, Andreas & Midkiff, Hillery. & Breda, Valerie., 2014. "Microinsurance and child labour an impact evaluation of NRSP's (Pakistan) microinsurance innovation," ILO Working Papers 994902913402676, International Labour Organization.
    • Handle: RePEc:ilo:ilowps:994902913402676
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    References listed on IDEAS

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    1. Edmonds, Eric V., 2008. "Child Labor," Handbook of Development Economics, in: T. Paul Schultz & John A. Strauss (ed.), Handbook of Development Economics, edition 1, volume 4, chapter 57, pages 3607-3709, Elsevier.
    2. Eric V. Edmonds & Norbert Schady, 2012. "Poverty Alleviation and Child Labor," American Economic Journal: Economic Policy, American Economic Association, vol. 4(4), pages 100-124, November.
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