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 bor...

In this paper, a variety of potentially explanatory indicators for child labor and school attendance in Zambia is scrutinized. By analyzing the results from a bivariate probit model, the arising doubt with regard to the income sensitivity of the child labor choice is confirmed. Among other factors, community effects influence the child labor and schooling choice. Based on the results, sensitiza...