Replication data for: Child Labor and Schooling Decisions among Self-Help Groups Members in Rural India

This paper investigates the impact of informal microfinance groups (SHGs) on children's education and work in rural India. In 2002, 24 eligible villages were randomly selected for opening SHGs and 12 other were randomly selected as control group. Households were surveyed three times over a five-year period, allowing the study of medium-term outcomes. We find a robust and strong increase in secondary school enrollment rates over time, with ITT estimates of about 40%. This effect stems from a quicker grade progression, leading to lower drop-out rates between primary and secondary school. Contrary to usual presumptions, we find no decrease in overall child labor (but a reorientation towards part-time domestic work) and no direct role of credit. By contrast, we show that social interactions within SHGs are very important.