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Household Access to Microcredit and Child Work in Rural Malawi

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  • Sudipta Sarangi
  • Gautam Hararika

Abstract

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, in the peak harvest season, 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 means of owned land 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.

Suggested Citation

  • Sudipta Sarangi & Gautam Hararika, 2006. "Household Access to Microcredit and Child Work in Rural Malawi," Departmental Working Papers 2006-08, Department of Economics, Louisiana State University.
    • Handle: RePEc:lsu:lsuwpp:2006-08
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    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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