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Are Women “Naturally” Better Credit Risks in Microcredit? Evidence from Field Experiments in Patriarchal and Matrilineal Societies in Bangladesh

Author

Listed:
  • Sugato Chakravarty

    (Purdue University)

  • S. M. Zahid Iqbal

    (Purdue University)

  • Abu Zafar M. Shahriar

    (Monash University)

Abstract

We use controlled experiments to identify the proximal causes of gender differences in the repayment of microcredit. We recruit male and female subjects from a patriarchal and a matrilineal community in Bangladesh, who live in the same villages, and find that the female subjects have a greater willingness to repay microcredit in every society irrespective of the type of loan. Thus, the observed gender differences in the repayment of microcredit cannot be explained by the different roles that women play in different societies. In other words, women are “naturally” better credit risks than men in microcredit. We confirm that our results are not driven by the common culture and values among our subjects that stem from geographical proximity.

Suggested Citation

  • Sugato Chakravarty & S. M. Zahid Iqbal & Abu Zafar M. Shahriar, 2013. "Are Women “Naturally” Better Credit Risks in Microcredit? Evidence from Field Experiments in Patriarchal and Matrilineal Societies in Bangladesh," Working Papers 1019, Purdue University, Department of Consumer Sciences.
    • Handle: RePEc:csr:wpaper:1019
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    References listed on IDEAS

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    Cited by:

    1. Musiliu Okesina, 2022. "Why Does Microfinance Target Women? Empirical Evidence from Nigeria," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 14(2), pages 246-264, May.
    2. Rajmoni Singha, 2014. "Kinship and Marriage System among the Khasis of Bangladesh: A Study of Khasi Culture and Identity," Bangladesh Development Research Working Paper Series (BDRWPS) BDRWPS No. 24, Bangladesh Development Research Center (BDRC).

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    Keywords

    microfinance; nature; nurture; competition; loan repayment;
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