Does micro credit increase child labour in absence of micro insurance?

This research aims to discover whether access to microinsurance might make any difference to the microcredit receivers in terms of reducing their use of child labour. The research decomposes households into three broad groups: microcredit participants with microinsurance, microcredit participants without microinsurance and non-participants of microcredit and microinsurance. Using household information in Monga (flood) prone areas in Bangladesh, we use regression models to examine determinants of child labour for the different groups of households. The households in the flood prone regions are forced to implement coping strategies like skipping meals, using child labour, or using microcredit services