Microcredit in India: Forging A New Path to School?

Dialogues économiques
NOVEMBER 9, 2021
For the most impoverished, the various obstacles and pitfalls along the path to school do not always make it a walk in the park. To fight against poverty, many microcredit programs have been set up. One of these, the “Self Help Group” in the state of Jharkhand, India, has been studied by economists Jean-Marie Baland, Timothée Demont, and Rohini Somanathan. After six years of operation, the program has increased school enrollment by 40%. However, it remains ineffective in reducing child labor. These results can further help us understand how microcredit works.
Reference
Baland, Jean-Marie, Timothée Demont, and Rohini Somanathan. 2020. “Child Labor and Schooling Decisions among Self-Help Group Members in Rural India.” Economic Development and Cultural Change 69 (1): 73–105.
Read the article on
https://www.dialogueseconomiques.fr/en/article/microcredit-india-forging-new-path-school

Latest publications

Cecilia García Peñalosa: Connections between growth, inequality, and gender
A video interview with Research Professor Cecilia García Peñalosa (CNRS/EHESS/AMSE), who was awarded the CNRS Silver Medal in 2025.
In healthcare, controlling spending comes at the expense of the most disadvantaged.
An article by Marwân-al-Qays Bousmah (INED), Bruno Ventelou (CNRS / AMSE), Mohammad Abu-Zaineh (AMU / AMSE), and Simon Combes (UCL) published by The Conversation.
Economic outlook: fragile stability under pressure as 2027 approaches.
Summary of the discussion between Xavier Ragot, President of the French Economic Observatory, and Alain Trannoy (EHESS/AMSE) at the latest "Café de l’éco" organized by the Cercle des économistes.