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Microfinance, vulnerability and risk in low income households

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  • Ranjula Bali Swain
  • Maria Floro

Abstract

We investigate if participation in the Indian Self Help Group (SHG) program results in reducing poverty and vulnerability. The theoretical framework examines the mechanisms through which the pecuniary and non-pecuniary effects of the SHG impacts the households' ability to manage risk. We use a vulnerability measure that quantifies the welfare loss associated with poverty and different types of risks, on an Indian panel survey data. Our results show that SHG members are less vulnerable compared with a group of non-SHG (control) members. About 80% of the vulnerability faced by the households is poverty related.

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  • Ranjula Bali Swain & Maria Floro, 2014. "Microfinance, vulnerability and risk in low income households," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(5), pages 539-561, September.
    • Handle: RePEc:taf:irapec:v:28:y:2014:i:5:p:539-561
    DOI: 10.1080/02692171.2014.918937
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    References listed on IDEAS

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    1. Cesar Calvo & Stefan Dercon, 2005. "Measuring Individual Vulnerability," Economics Series Working Papers 229, University of Oxford, Department of Economics.
    2. Ethan Ligon & Laura Schechter, 2002. "Measuring Vulnerability: The Director's Cut," WIDER Working Paper Series DP2002-86, World Institute for Development Economic Research (UNU-WIDER).
    3. Stefan Dercon (QEH), "undated". "Vulnerability: a micro perspective," QEH Working Papers qehwps149, Queen Elizabeth House, University of Oxford.
    4. Ethan Ligon & Laura Schechter, 2003. "Measuring Vulnerability," Economic Journal, Royal Economic Society, vol. 113(486), pages 95-102, March.
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    Cited by:

    1. Shijiang Chen & Mingyue Liang & Wen Yang, 2022. "Does Digital Financial Inclusion Reduce China’s Rural Household Vulnerability to Poverty: An Empirical Analysis From the Perspective of Household Entrepreneurship," SAGE Open, , vol. 12(2), pages 21582440221, June.
    2. Ranjula Bali Swain & Supriya Garikipati, 2019. "Microfinance in the Global South: Examining Evidence on Social Efficacy," Working Papers 201908, University of Liverpool, Department of Economics.
    3. Waseem Ul Hameed & Muhammad Haseeb & Jawad Iqbal & Leonardus W. W. Mihardjo & Kittisak Jermsittiparsert, 2022. "Environmental disaster and women self‐sustainability—A survey study on microfinance female clientele in Pakistan," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 3599-3622, July.
    4. Olga Gorelkina & Ioanna Grypari & Erin Hengel, 2019. "One strike and you’re out! The Master Lever’s effect on senatorial policy-making," Working Papers 201906, University of Liverpool, Department of Economics.
    5. Supriya Garikipati & Rebecca J. Docherty & Penelope A. Phillips-Howard, 2019. "What’s the bleeding problem? Policy and attitudes towards sustainable menstrual hygiene materials in India," Working Papers 201907, University of Liverpool, Department of Economics.

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