Abstract
Sustainable Development Goal (SDG) 8.3 envisages the elimination of all forms of child labour by 2025. However, child labour persists in many parts of the world. This paper examines whether longer and more consistent access to and use of microcredit influences households’ use of child labour. Our dataset comprises two rounds of the Bangladesh Integrated Household Survey (Round 2 in 2015 and Round 3 in 2018), forming a panel of 4,624 children. The results from a multinomial probit model indicate that access to credit reduces the future likelihood of working for both boys and girls in rural Bangladesh, enabling households to substitute child labour with
hired labour. Our estimates also suggest that household income, land holdings, parental education, household headship and family size influence the prevalence of child labour. Child labour is predominantly observed in credit-constrained rural households, so our findings have important implications for policy to reduce its prevalence in Bangladesh.
hired labour. Our estimates also suggest that household income, land holdings, parental education, household headship and family size influence the prevalence of child labour. Child labour is predominantly observed in credit-constrained rural households, so our findings have important implications for policy to reduce its prevalence in Bangladesh.
Original language | English |
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Publisher | University of Manchester, Global Development Institute |
Pages | 1-22 |
Number of pages | 22 |
Publication status | Submitted - 30 Jun 2024 |
Publication series
Name | Working Paper Series |
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