Socially Disadvantaged Groups and Microfinance in India
AbstractIn this paper we provide an empirical analysis of the performance of microfinance groups, known as Self-Help groups, based on an original census we carried out in a poor area of Northern India. We examine whether traditionally disadvantaged villagers, such as members of lower castes or landless farmers, are less likely to have access to groups. We also analyze their performance in terms of access to bank loans, which is an important benefit of the groups. We nd evidence of the attrition process being selective against lower castes: they have a lower probability of becoming a permanent member of a group. The net effects in terms of their expected access to a bank loan remain however relatively limited. By contrast, even though landless farmers are more likely to fail or leave the groups, they tend to bene t disproportionately. In expected terms, they receive more than two times the amounts of bank loans given to farmers owning more than one acre. Overall, the program therefore has positive and important distributional implications.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Namur, Department of Economics in its series Working Papers with number 1117.
Length: 50 pages
Date of creation: Dec 2011
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-12-19 (All new papers)
- NEP-BAN-2011-12-19 (Banking)
- NEP-DEV-2011-12-19 (Development)
- NEP-MFD-2011-12-19 (Microfinance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Karlan, Dean S., 2007.
"Social Connections and Group Banking,"
CEPR Discussion Papers
6194, C.E.P.R. Discussion Papers.
- Dean S. Karlan, 2005. "Social Connections and Group Banking," Working Papers 181, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
- Dean S. Karlan, 2005. "Social Connections and Group Banking," Working Papers 913, Economic Growth Center, Yale University.
- Isha Dewan & Rohini Somanathan, 2004. "Poverty targeting in public programs: A comparison of alternative nonparametric methods," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 04-16, Indian Statistical Institute, New Delhi, India.
- Rajiv Sethi & Rohini Somanathan, 2002.
"Inequality and segregation,"
Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers
02-06, Indian Statistical Institute, New Delhi, India.
- Rajiv Sethi & Rohini Somanathan, 2001. "Inequality and Segregation," Microeconomics 0108005, EconWPA.
- Rajiv Sethi & Rohini Somanathan, 2004. "Inequality and segregation," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 04-03, Indian Statistical Institute, New Delhi, India.
- Alonso-Villar, Olga & del Río, Coral, 2010.
"Local versus overall segregation measures,"
Mathematical Social Sciences,
Elsevier, vol. 60(1), pages 30-38, July.
- Bell, Clive, 1990. "Interactions between Institutional and Informal Credit Agencies in Rural India," World Bank Economic Review, World Bank Group, vol. 4(3), pages 297-327, September.
- Mario Cleves & William W. Gould & Roberto G. Gutierrez & Yulia Marchenko, 2010. "An Introduction to Survival Analysis Using Stata," Stata Press books, StataCorp LP, edition 3, number saus3, March.
- Fryer, Roland & Echenique, Federico, 2007. "A Measure of Segregation Based on Social Interactions," Scholarly Articles 2958220, Harvard University Department of Economics.
- Rohini Somanathan, 2008. "The Demand for Disadvantage," Working papers 169, Centre for Development Economics, Delhi School of Economics.
- Jean-Marie Baland & Rohini Somanathan & Lore Vandewalle, 2007. "Microfinance Lifespans: A Study of Attrition and Exclusion in Self-Help Groups in India," India Policy Forum, Global Economy and Development Program, The Brookings Institution, vol. 4(1), pages 159-210.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marie-H�l�ne Mathieu).
If references are entirely missing, you can add them using this form.