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We use a set of experiments to study the effects of forced military service for a rebel group on social capital. We examine the case of Northern Uganda, where recruits did not self-select nor were systematically screened by rebels. We find that individual cooperativeness robustly increases with length of soldiering, especially among those who soldiered during early age. Parents of ex-soldiers are aware of the behavioral difference: they trust ex-soldiers more and expect them to be more trustworthy. These results suggest that the impact of child soldiering on social capital, in contrast to human capital, is not necessarily detrimental.

We use experimental measures of time discounting and risk aversion for villagers in south India to highlight behavioral features of microcredit, a financial tool designed to reduce poverty and fix credit market imperfections. The evidence suggests that microcredit contracts may do more than reduce moral hazard and adverse selection by imposing new forms of discipline on borrowers. We find that, conditional on borrowing from any source, women with present-biased preferences are more likely than others to borrow through microcredit institutions. Another particular contribution of microcredit may thus be to provide helpful structure for borrowers seeking self-discipline. JEL: G21, I38, O15, O16, O18