Child labor and schooling decisions among self-help group members in rural India

Jean Marie Baland; Timothée Demont; Rohini Somanathan

doi:10.1086/703046

Child labor and schooling decisions among self-help group members in rural India

Jean Marie Baland, Timothée Demont, Rohini Somanathan

Centre of Research in the Economics of Development

Research output: Contribution to journal › Article › peer-review

Abstract

This paper investigates the impact of informal microfinance groups (self-help groups, or SHGs) on children’s education and work in rural India. In 2002, 24 eligible villages were randomly selected for opening SHGs, and 12 others were randomly selected as a control group. Households were surveyed three times over a 5-year period, allowing for the study of medium-term outcomes. We find a robust and strong increase in secondary school enrollment rates over time, with intention-to-treat estimates of about 40%. This effect stems from a quicker grade progression, leading to lower dropout rates between primary and secondary school. Contrary to usual presumptions, we find no decrease in overall child labor (but a reorientation toward part-time domestic work) and no direct role of credit. By contrast, we show that social interactions within SHGs are very important.

Original language	English
Pages (from-to)	73-105
Number of pages	33
Journal	Economic Development and Cultural Change
Volume	69
Issue number	1
DOIs	https://doi.org/10.1086/703046
Publication status	Published - 1 Oct 2020

Funding

This research was supported by the European Research Council (grant AdG-230290-SSD), the Seventh Framework Program of the European Commission (contract 214705 PITN-GA-2008-214705), and the Agence Nationale de la Recherche of the French government (grants ANR-10-LABX-14-01 and ANR-11-IDEX-0001-02). This research was supported by the European Research Council (grant AdG-230290-SSD), the Seventh Framework Program of the European Commission (contract 214705 PITN-GA-2008-214705), and the Agence Nationale de la Recherche of the French government (grants ANR-10-LABX-14-01 and ANR-11-IDEX-0001-02). We gratefully acknowledge early data-collection support and stimulating discussions with Michel Tenikue and thank for their helpful comments Paul Reding, Xavier Gin\u00E9, Catherine Guirkinger, Romain Houssa, and numerous seminar participants at the London School of Economics, the Institute for International Economic Studies (Stockholm), the Centre of Research in the Economics of Development (Namur), and the 2016 UNU-WIDER Conference on Human Capital and Growth. We also want to thank PRADAN (Delhi) for its dynamic partnership in this project and, in particular, Sanjay Prasad and Amit Kumar from the Data Research Unit for outstanding assistance in data collection and cleaning. Contact the corresponding author, Timoth\u00E9e Demont, at [email protected].

Funders	Funder number
European Research Council
European Commission
Seventh Framework Programme	214705, 230290
Agence Nationale de la Recherche	ANR-10-LABX-14-01, ANR-11-IDEX-0001-02

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1086/703046

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title = "Child labor and schooling decisions among self-help group members in rural India",

abstract = "This paper investigates the impact of informal microfinance groups (self-help groups, or SHGs) on children{\textquoteright}s education and work in rural India. In 2002, 24 eligible villages were randomly selected for opening SHGs, and 12 others were randomly selected as a control group. Households were surveyed three times over a 5-year period, allowing for the study of medium-term outcomes. We find a robust and strong increase in secondary school enrollment rates over time, with intention-to-treat estimates of about 40\%. This effect stems from a quicker grade progression, leading to lower dropout rates between primary and secondary school. Contrary to usual presumptions, we find no decrease in overall child labor (but a reorientation toward part-time domestic work) and no direct role of credit. By contrast, we show that social interactions within SHGs are very important.",

author = "Baland, \{Jean Marie\} and Timoth{\'e}e Demont and Rohini Somanathan",

note = "Funding Information: This research was supported by the European Research Council (grant AdG-230290-SSD), the Seventh Framework Program of the European Commission (contract 214705 PITN-GA-2008-214705), and the Agence Nationale de la Recherche of the French government (grants ANR-10-LABX-14-01 and ANR-11-IDEX-0001-02). Funding Information: This research was supported by the European Research Council (grant AdG-230290-SSD), the Seventh Framework Program of the European Commission (contract 214705 PITN-GA-2008-214705), and the Agence Nationale de la Recherche of the French government (grants ANR-10-LABX-14-01 and ANR-11-IDEX-0001-02). We gratefully acknowledge early data-collection support and stimulating discussions with Michel Tenikue and thank for their helpful comments Paul Reding, Xavier Gin{\'e}, Catherine Guirkinger, Romain Houssa, and numerous seminar participants at the London School of Economics, the Institute for International Economic Studies (Stockholm), the Centre of Research in the Economics of Development (Namur), and the 2016 UNU-WIDER Conference on Human Capital and Growth. We also want to thank PRADAN (Delhi) for its dynamic partnership in this project and, in particular, Sanjay Prasad and Amit Kumar from the Data Research Unit for outstanding assistance in data collection and cleaning. Contact the corresponding author, Timoth{\'e}e Demont, at [email protected]. Publisher Copyright: {\textcopyright} 2020 by The University of Chicago. All rights reserved.",

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N2 - This paper investigates the impact of informal microfinance groups (self-help groups, or SHGs) on children’s education and work in rural India. In 2002, 24 eligible villages were randomly selected for opening SHGs, and 12 others were randomly selected as a control group. Households were surveyed three times over a 5-year period, allowing for the study of medium-term outcomes. We find a robust and strong increase in secondary school enrollment rates over time, with intention-to-treat estimates of about 40%. This effect stems from a quicker grade progression, leading to lower dropout rates between primary and secondary school. Contrary to usual presumptions, we find no decrease in overall child labor (but a reorientation toward part-time domestic work) and no direct role of credit. By contrast, we show that social interactions within SHGs are very important.

AB - This paper investigates the impact of informal microfinance groups (self-help groups, or SHGs) on children’s education and work in rural India. In 2002, 24 eligible villages were randomly selected for opening SHGs, and 12 others were randomly selected as a control group. Households were surveyed three times over a 5-year period, allowing for the study of medium-term outcomes. We find a robust and strong increase in secondary school enrollment rates over time, with intention-to-treat estimates of about 40%. This effect stems from a quicker grade progression, leading to lower dropout rates between primary and secondary school. Contrary to usual presumptions, we find no decrease in overall child labor (but a reorientation toward part-time domestic work) and no direct role of credit. By contrast, we show that social interactions within SHGs are very important.

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EP - 105

JO - Economic Development and Cultural Change

JF - Economic Development and Cultural Change

IS - 1

ER -

Child labor and schooling decisions among self-help group members in rural India

Abstract

Funding

UN SDGs

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