Microcredit participation and fertility: evidence from Bangladesh

Bangladesh has experienced a significant decline in fertility in recent decades. At the same time, the country has witnessed a rapid increase in microcredit coverage. This article examines the role of microcredit in fertility decline in Bangladesh. It uses a large household-level panel dataset for the period 1997–2005 designed specifically to evaluate microcredit programmes across Bangladesh. Using a difference-in-differences framework combined with matching techniques, the article finds that access to microcredit is associated with lower recent fertility and fewer births during the study period. It also finds that the channels through which this association appears to operate include increased awareness of contraception use, a reduction in child mortality, increased time engaged in income-generating and productive activities, and reduced time available for child-rearing.