The Relationship between Child Labor and Microfinance: Evidence from Rural Bangladesh
The Relationship between Child Labor and Microfinance: Evidence from Rural Bangladesh
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Date
2009
Authors
Khadka, Manbar Singh
Advisor
Leonard, Kenneth L
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Abstract
This paper analyzes the relationship between availability of microfinance and child labor in rural Bangladesh. Using household-level fixed effect in panel data, this paper shows that the stock of women's recent loans negatively impacts child labor. A 10 percent increase in the stock of recent borrowing by women reduces child labor supply by 2.58 percent. By contrast, the paper does not find any significant effect of male credit on child labor.