The controversial effects of microfinance on child schooling: A retrospective approach
AbstractTwo crucial problems when research agencies or donors need to asses empirically the microfinance/children education nexus on already operating organizations are lack of availability of panel data and selection bias. We propose an original approach which tackles these problems by combining retrospective panel data, fixed effects and comparison between pre and post-treatment trends. The relative advantage of our approach vis-à-vis standard cross-sectional estimates (and even panels with just two observations repeated in time) is that it allows to analyse the progressive effects of microfinance on borrowers. With this respect our paper gives an answer to the widespread demand of impact methodologies required by regulators or by funding agencies which need to evaluate the current and past performance of existing institutions. We apply our approach to a sample of microfinance borrowers coming from two districts of Buenos Aires with different average income levels. By controlling for survivorship bias and heterogeneity in time invariant and time varying characteristics of respondents we find that years of credit history have a positive and significant effect on child schooling conditional to the borrower’s standard of living and distance from school.
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Bibliographic InfoPaper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 173.
Length: 28 pages
Date of creation: 2010
Date of revision:
child schooling; microfinance; retrospective data; impact evaluation.;
Other versions of this item:
- Leonardo Becchetti & Pierluigi Conzo, 2014. "The effects of microfinance on child schooling: a retrospective approach," Applied Financial Economics, Taylor & Francis Journals, vol. 24(2), pages 89-106, January.
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
- G20 - Financial Economics - - Financial Institutions and Services - - - General
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- O54 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-10 (All new papers)
- NEP-DEV-2010-07-10 (Development)
- NEP-EDU-2010-07-10 (Education)
- NEP-LAB-2010-07-10 (Labour Economics)
- NEP-MFD-2010-07-10 (Microfinance)
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- Emerson, Patrick M. & McGough, Bruce, 2010. "Are Microloans Bad for Growth?," IZA Discussion Papers 5249, Institute for the Study of Labor (IZA).
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