Microcredit participation and child schooling in rural Bangladesh: evidence from a cross-sectional survey

Bhuiya, Mohammad Monzur Morshed and Khanam, Rasheda ORCID: https://orcid.org/0000-0003-1130-2357 and Rahman, Mohammad Mafizur ORCID: https://orcid.org/0000-0002-7950-1961 and Nghiem, Son (2019) Microcredit participation and child schooling in rural Bangladesh: evidence from a cross-sectional survey. Economic Analysis and Policy, 64. pp. 293-301. ISSN 0313-5926

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This paper investigates the impact of microcredit programs on child schooling in rural Bangladesh using cross-sectional data from 439 households across 20 villages of four districts of the country. A child's school outcomes are measured by school enrolment, school attendance and grade attainment (measured by the right grade for age). Our results reveal that participation in microcredit programs has a significant positive effect on school attendance but no effect on either school enrolment or grade attainment, suggesting that care should be taken in assessing the effectiveness of microcredit programs. Despite the fact that microcredit programs can alleviate poverty and contribute to the rural economy, these can also result in unintended consequences such as adverse effects on children's schooling. Policies aiming to improving the children's educational achievement in rural households should consider providing or enhancing subsidized educational stationery and meals besides providing free universal education among the children of microcredit participants

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Accepted version deposited in accordance with the copyright policy of the publisher.
Faculty/School / Institute/Centre: Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021)
Faculty/School / Institute/Centre: Historic - Institute for Resilient Regions - Centre for Health, Informatics and Economic Research (1 Aug 2018 - 31 Mar 2020)
Date Deposited: 18 Nov 2019 23:45
Last Modified: 23 Dec 2020 06:06
Uncontrolled Keywords: microcredit, Bangladesh, child schooling, cross-sectional survey
Fields of Research (2008): 14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
14 Economics > 1403 Econometrics > 140301 Cross-Sectional Analysis
14 Economics > 1402 Applied Economics > 140204 Economics of Education
14 Economics > 1402 Applied Economics > 140299 Applied Economics not elsewhere classified
Fields of Research (2020): 44 HUMAN SOCIETY > 4404 Development studies > 440499 Development studies not elsewhere classified
38 ECONOMICS > 3802 Econometrics > 380201 Cross-sectional analysis
38 ECONOMICS > 3801 Applied economics > 380104 Economics of education
38 ECONOMICS > 3801 Applied economics > 380199 Applied economics not elsewhere classified
Socio-Economic Objectives (2008): B Economic Development > 91 Economic Framework > 9199 Other Economic Framework > 919999 Economic Framework not elsewhere classified
E Expanding Knowledge > 97 Expanding Knowledge > 970113 Expanding Knowledge in Education
Identification Number or DOI: https://doi.org/10.1016/j.eap.2019.09.005
URI: http://eprints.usq.edu.au/id/eprint/37278

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