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Household Access to Microcredit and Child Work in Rural Malawi

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  • Sudipta Sarangi

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  • 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, 2007. "Household Access to Microcredit and Child Work in Rural Malawi," Departmental Working Papers 2007-09, Department of Economics, Louisiana State University.
  • Handle: RePEc:lsu:lsuwpp:2007-09
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    References listed on IDEAS

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    Cited by:

    1. Fuwa Nobuhiko & Ito Seiro & Kubo Kensuke & Kurosaki Takashi & Sawada Yasuyuki, 2012. "How Does Credit Access Affect Children's Time Allocation?: Evidence from Rural India," Journal of Globalization and Development, De Gruyter, vol. 3(1), pages 1-28, June.
    2. Edmonds, Eric V., 2008. "Child Labor," Handbook of Development Economics, Elsevier.
    3. Maconachie, Roy & Hilson, Gavin, 2016. "Re-Thinking the Child Labor “Problem” in Rural sub-Saharan Africa: The Case of Sierra Leone’s Half Shovels," World Development, Elsevier, vol. 78(C), pages 136-147.
    4. Shimamura, Yasuharu & Lastarria-Cornhiel, Susana, 2010. "Credit Program Participation and Child Schooling in Rural Malawi," World Development, Elsevier, vol. 38(4), pages 567-580, April.
    5. Asadul Islam & Chongwoo Choe, 2013. "Child Labor And Schooling Responses To Access To Microcredit In Rural Bangladesh," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 46-61, January.
    6. Heather Congdon Fors, 2012. "Child Labour: A Review Of Recent Theory And Evidence With Policy Implications," Journal of Economic Surveys, Wiley Blackwell, vol. 26(4), pages 570-593, September.
    7. Kasat, Puja, 2010. "Innovative Approaches to Developmental Microfinance in India," MPRA Paper 22238, University Library of Munich, Germany.
    8. repec:spr:jopoec:v:31:y:2018:i:2:d:10.1007_s00148-017-0656-x is not listed on IDEAS
    9. Valerie Mueller & Abusaleh Shariff, 2011. "Preliminary Evidence On Internal Migration, Remittances, And Teen Schooling In India," Contemporary Economic Policy, Western Economic Association International, vol. 29(2), pages 207-217, April.
    10. Oryoie, Ali Reza & Alwang, Jeffrey & Tideman, Nicolaus, 2017. "Child Labor and Household Land Holding: Theory and Empirical Evidence from Zimbabwe," World Development, Elsevier, vol. 100(C), pages 45-58.
    11. Kafle, Kashi & Jolliffe, Dean & Winter-Nelson, Alex, 2017. "Do Different Types of Assets Have Differential Effects on Child Education? Evidence from Tanzania," IZA Discussion Papers 11233, Institute for the Study of Labor (IZA).
    12. Del Carpio, Ximena V., 2008. "Does child labor always decrease with income ? an evaluation in the context of a development program in Nicaragua," Policy Research Working Paper Series 4694, The World Bank.
    13. Hamna Ahmed, 2012. "The Impact of Public School Enrolment on Child Labor in Punjab, Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(2), pages 1-34, July-Dec.
    14. Lulit Mitik & Bernard Decaluwé, 2009. "Market Labor, Household Work and Schooling in South Africa: Modeling the Effects of Trade on Adults' and Children's Time Allocation," Cahiers de recherche 0933, CIRPEE.
    15. Aïssata COULIBALY, 2016. "Revisiting the Relationship between Financial Development and Child Labor in Developing Countries: Do Inequality and Institutions Matter?," Working Papers 201619, CERDI.
    16. Swaminathan, Hema & Salcedo Du Bois, Rodrigo & Findeis, Jill L., 2010. "Impact of Access to Credit on Labor Allocation Patterns in Malawi," World Development, Elsevier, vol. 38(4), pages 555-566, April.
    17. Christian Lehmann & Guilherme Issamu Hirata, 2010. "Unintended Effects of Microfinance: An Increase in Child Labour in Some Contexts?," One Pager 108, International Policy Centre for Inclusive Growth.
    18. repec:pid:journl:v:55:y:2016:i:4:p:853-870 is not listed on IDEAS
    19. Alvi, Eskander & Dendir, Seife, 2011. "Weathering the Storms: Credit Receipt and Child Labor in the Aftermath of the Great Floods (1998) in Bangladesh," World Development, Elsevier, vol. 39(8), pages 1398-1409, August.
    20. Bidisha, Sayema Haque & Khan, Akib & Imran, Khalid & Khondker, Bazlul H. & Suhrawardy, Gazi Mohammad, 2017. "Role of credit in food security and dietary diversity in Bangladesh," Economic Analysis and Policy, Elsevier, vol. 53(C), pages 33-45.
    21. Chowa, Gina & Ansong, David & Masa, Rainier, 2010. "Assets and child well-being in developing countries: A research review," Children and Youth Services Review, Elsevier, vol. 32(11), pages 1508-1519, November.
    22. Vimefall, Elin, 2015. "Income diversification and working children," Working Papers 2015:8, Örebro University, School of Business.
    23. Jacobus Hoop & Patrick Premand & Furio Rosati & Renos Vakis, 2018. "Women’s economic capacity and children’s human capital accumulation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(2), pages 453-481, April.
    24. Alam, Shamma Adeeb, 2015. "Parental health shocks, child labor and educational outcomes: Evidence from Tanzania," Journal of Health Economics, Elsevier, vol. 44(C), pages 161-175.

    More about this item

    JEL classification:

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

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