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Financial Inclusion for Women: Impact Evaluation on Islamic Microfinance to Women’s Empowerment in Indonesia

In: Financial Inclusion and Poverty Alleviation

Author

Listed:
  • Umi Karomah Yaumidin

    (Indonesia Institute of Sciences)

  • Diah Setiari Suhodo

    (Indonesia Institute of Sciences)

  • Putri Irma Yuniarti

    (Indonesia Institute of Sciences)

  • Achsanah Hidayatina

    (Indonesia Institute of Sciences)

Abstract

This chapter evaluates the impact of the Islamic microfinance institution toward the women empowerment. We surveyed approximately two hundred and forty women who had been involved in the microfinance of the Misykat program in the Dompet Peduli Ummat of Daarut Tauhid and BAZNAS in Bandung. The primary data collection was held in two sessions, starting from June to December 2014. The causal effect of the credit on empowerment was identified using quasi-experimental setting with proxy controls for latent heterogeneity between the control and the treatment groups. The study suggests that women involvement in the microfinance improves their position within the household through (i) access to independent income; (ii) control over savings and credit use; and (iii) ability to bring productive asset to household economy. In addition, using the matching propensity score and the instrumental variable methods helps address the bias selection in a cross-sectional setting.

Suggested Citation

  • Umi Karomah Yaumidin & Diah Setiari Suhodo & Putri Irma Yuniarti & Achsanah Hidayatina, 2017. "Financial Inclusion for Women: Impact Evaluation on Islamic Microfinance to Women’s Empowerment in Indonesia," Palgrave Studies in Islamic Banking, Finance and Economics, in: Muhamed Zulkhibri & Abdul Ghafar Ismail (ed.), Financial Inclusion and Poverty Alleviation, chapter 0, pages 81-140, Palgrave Macmillan.
  • Handle: RePEc:pal:psibcp:978-3-319-69799-4_3
    DOI: 10.1007/978-3-319-69799-4_3
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    Cited by:

    1. Subiakto Soekarno & Marla Setiawati, 2020. "Women and Digital Financial Inclusion in Indonesia as Emerging Market," International Review of Management and Marketing, Econjournals, vol. 10(5), pages 46-49.

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