RURAL INCOME-GENERATING PROGRAMS AND FERTILITY LIMITATION - EVIDENCE FROM A MICRODEMOGRAPHIC STUDY IN NEPAL

Participation in rural development programs that organize members into local cooperative groups can alter the decision-making environment facing couples to reflect some of the negative consequences of childbearing. This study uses data from Nepal, collected through a combination of ethnographic and survey methods, to test the effects of participation in such a development program on fertility behavior. Results demonstrate that program participants are much more likely to use contraceptives to limit their fertility than are non-participants. The study provides empirical support for theories linking this type of institutional change to fertility and indicates a policy option that can allow some negative consequences of childbearing to affect couples' fertility decisions.