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Unintended Effects of Microfinance: An Increase in Child Labour in Some Contexts?

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  • Christian Lehmann

    ()
    (International Policy Centre for Inclusive Growth)

  • Guilherme Issamu Hirata

    ()
    (International Poverty Centre)

Abstract

An increasing number of policies in developing countries seek to empower women through female entrepreneurship. Many microfinance institutions (MFIs), for example, lend exclusively to women. Loans are usually combined with capacity building workshops on entrepreneurial activities such as the production of handicrafts, clothes or food to be sold in local markets. While there is evidence that these strategies have been successful in empowering women (Panjaitan-Drioadisuryo and Cloud, 1999), less is known about how such an increase in mothers? non-domestic labour affects the working hours of their children. In the few available studies, the results are ambiguous: see, for example, Hazarika et al. (2007) and Dehejia and Gatti (2002). Drawing on a study of Mexico (Lehman, 2010), this One Pager points out that policies which encourage the small business activities of women may lead to an increase in child labour. It hypothesises that the provision of family and/or social support infrastructure (full-day schools and childcare facilities), and/or policies that encourage investment in the children?s future, may help mitigate these unintended impacts.

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File URL: http://www.ipc-undp.org/pub/IPCOnePager108.pdf
File Function: First version, 2010
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Bibliographic Info

Paper provided by International Policy Centre for Inclusive Growth in its series One Pager with number 108.

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Length: 1
Date of creation: May 2010
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Publication status: Published by UNDP - International Policy Centre for Inclusive Growth , May 2010, pages 1-1
Handle: RePEc:ipc:opager:108

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Keywords: Unintended Effects of Microfinance: An Increase in Child Labour in Some Contexts?;

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  1. Fabio Veras Soares & Rafael Perez Ribas & Guilherme Issamu Hirata, 2008. "Achievements and Shortfalls of Conditional Cash Transfers: Impact Evaluation of Paraguay?s Tekopor√£ Programme," Publications 3, International Policy Centre for Inclusive Growth.
  2. Dehejia, Rajeev H. & Gatti, Roberta, 2002. "Child labor : the role of income variability and access to credit in a cross-section of countries," Policy Research Working Paper Series 2767, The World Bank.
  3. Hazarika, Gautam & Sarangi, Sudipta, 2008. "Household Access to Microcredit and Child Work in Rural Malawi," World Development, Elsevier, vol. 36(5), pages 843-859, May.
  4. Panjaitan-Drioadisuryo, R.D.M. & Cloud, Kathleen, 1999. "Gender, self-employment and microcredit programs An Indonesian case study," The Quarterly Review of Economics and Finance, Elsevier, vol. 39(5), pages 769-779.
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