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Household Access to Microcredit and Child Work in Rural Malawi

  • Hazarika, Gautam

    ()

    (University of Texas at Brownsville)

  • Sarangi, Sudipta

    ()

    (Louisiana State University)

This paper examines the effect of household access to microcredit upon work by seven to eleven year old children in rural Malawi. Given that microcredit organizations foster household enterprises wherein much child labor is engaged, this paper aims to discover whether access to microcredit might increase work by children. It is found that household access to microcredit, measured in a novel manner as self-assessed credit limits at microcredit organizations, raises the probability of child work in households with sample mean values of land ownership and number of retail sales enterprises. It appears this is due to children having to take up more domestic chores as adults are busied in household enterprises following improved access to microcredit.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1567.

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Length: 24 pages
Date of creation: Apr 2005
Date of revision:
Handle: RePEc:iza:izadps:dp1567
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  2. Beegle, Kathleen & Dehejia, Rajeev H & Gatti, Roberta, 2005. "Child Labour, Crop Shocks and Credit Constraints," CEPR Discussion Papers 4881, C.E.P.R. Discussion Papers.
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  15. Hoddinott, John & Haddad, Lawrence, 1995. "Does Female Income Share Influence Household Expenditures? Evidence from Cote d'Ivoire," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 77-96, February.
  16. Wydick, Bruce, 1999. "The Effect of Microenterprise Lending on Child Schooling in Guatemala," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 853-69, July.
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  23. George Psacharopoulos, 1997. "Child labor versus educational attainment Some evidence from Latin America," Journal of Population Economics, Springer, vol. 10(4), pages 377-386.
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