Impact Insurance Research Paper #32: Can microinsurance help prevent child labour?

Child labour is a common consequence of economic shocks in developing countries. Research Paper #32 explores how reducing vulnerability through insurance impacts child labour and schooling. Using the case of a health and accident insurance scheme by a Pakistani microfinance institution, the study finds that increased insurance coverage results in lower incidence of child labour and reduced earnings from child labour. The effect is largely attributed to an ex-ante feeling of protection as opposed to a shock-mitigation effect.