TY  - RPRT
        AU  - Dasgupta, Basab
AU  - Zimmermann, Christian
        TI  - Loan Regulation and Child Labor in Rural India
        PY  - 2012/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 6979
        UR  - https://www.iza.org/publications/dp6979
        AB  - We study the impact of loan regulation in rural India on child labor with an overlapping-generations model of formal and informal lending, human capital accumulation, adverse selection, and differentiated risk types. Specifically, we build a model economy that replicates the current outcome with a loan rate cap and no lender discrimination by risk using a survey of rural lenders. Households borrow primarily from informal moneylenders and use child labor. Removing the rate cap and allowing lender discrimination markedly increases capital use, eliminates child labor, and improves welfare of all household types.
        KW  - child labor
KW  - India
KW  - informal lending
KW  - lending discrimination
KW  - interest rate caps
        ER  -