Baland, J.M., Demont, T. and Somanathan, R. <br/><br/>
Child labor and schooling decisions among self-help group members in rural India 

 - Economic Development and Cultural Change  
 - 69(1), Oct, 2020: p.73-105 
<br/><br/> 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. – Reproduced  
<br/><br/><label>Subjects--Topical Terms: </label><br/>Rural development - India, Self help group - india