Journal of Epidemiology & Community Health
December 2014, Volume 68, Issue 12
http://jech.bmj.com/content/current

Microcredit participation and child health: results from a cross-sectional study in Peru
H Moseson1, R Hamad2, L Fernald3
Author Affiliations
1Department of Epidemiology & Biostatistics, University of California, San Francisco, California, USA
2Division of General Medical Disciplines, Stanford University, Stanford, California, USA
3Division of Community Health and Human Development, School of Public Health, University of California, Berkeley, California, USA
Received 24 February 2014
Revised 11 July 2014
Accepted 6 August 2014
Published Online First 1 September 2014
Abstract
Background
Childhood malnutrition is a major consequence of poverty worldwide. Microcredit programmes—which offer small loans, financial literacy and social support to low-income individuals—are increasingly promoted as a way to improve the health of clients and their families. This study evaluates the hypothesis that longer participation in a microcredit programme is associated with improvements in the health of children of microcredit clients.
Methods
Cross-sectional data were collected in February 2007 from 511 clients of a microcredit organisation in Peru and 596 of their children under 5 years of age. The primary predictor variable was length of participation in the microcredit programme. Outcome variables included height, weight, anaemia, household food security and parent-reported indicators of child health. Multivariate linear and logistic regressions assessed the association between the number of loan cycles and child health outcomes. Pathways through which microcredit may have influenced health outcomes were also explored via mediation analyses.
Results
Longer participation in microcredit was associated with greater household food security and reduced likelihood of childhood anaemia. No significant associations were observed between microcredit participation and incidence of childhood illnesses or anthropometric indicators. Increased consumption of red meat may mediate the association between the number of loan cycles and food security, but not the association with anaemia.
Conclusions
The effects of microcredit on the health of clients’ children are understudied. Exploratory findings from this analysis suggest that microcredit may positively influence child health, and that diet may play a causal role.