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Resisting Social Pressure in the Household Using Mobile Money: Experimental Evidence on Microenterprise Investment in Uganda

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Abstract

I examine whether changing the form of disbursement of a microfinance loan enables female microfinance borrowers to overcome intra-household sharing pressure and grow their businesses. Using a field experiment with 3,000 borrowers in Uganda, I compare the disbursement of a loan as cash to disbursement onto a digital account. After 8 months, women who received their microfinance loan on the digital account had 11 percent higher (US$70) business capital and 15 percent higher (US$18) profits compared to those who received their loan as cash. Impacts were greatest for women who experienced pressure to share money with others in the household at baseline.

Suggested Citation

  • Emma Riley, 2024. "Resisting Social Pressure in the Household Using Mobile Money: Experimental Evidence on Microenterprise Investment in Uganda," American Economic Review, American Economic Association, vol. 114(5), pages 1415-1447, May.
    • Handle: RePEc:aea:aecrev:v:114:y:2024:i:5:p:1415-47
    DOI: 10.1257/aer.20220717
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    Cited by:

    1. Riley, Emma & Shonchoy, Abu S. & Osei, Robert Darko, 2025. "Incentives and endorsement for technology adoption: Evidence from mobile banking in Ghana," Journal of Development Economics, Elsevier, vol. 176(C).
    2. Augsburg, Britta & Malde, Bansi & Olorenshaw, Harriet & Wahhaj, Zaki, 2023. "To invest or not to invest in sanitation: The role of intra-household gender differences in perceptions and bargaining power," Journal of Development Economics, Elsevier, vol. 162(C).
    3. Jean N. Lee & Jonathan Morduch & Saravana Ravindran & Abu S. Shonchoy, 2023. "The Social Meaning of Mobile Money: Willingness to Pay with Mobile Money in Bangladesh," Working Papers 2304, Florida International University, Department of Economics.
    4. Francisco Campos & Michael Frese & Leonardo Iacovone & Hillary C. Johnson & David McKenzie & Mona Mensmann, 2025. "Long-Term and Lasting Impacts of Personal Initiative Training on Entrepreneurial Success," American Economic Review: Insights, American Economic Association, vol. 7(4), pages 463-479, December.
    5. Tefera, Girum Abebe & Cassidy, Rachel & Weis, Toni Johannes, 2025. "Access to Capital and Women's Entrepreneurship," Policy Research Working Paper Series 11232, The World Bank.
    6. Campos, Francisco & Hernandez-de-Benito, Maria & Jamison, Julian C. & Safir, Abla & Zia, Bilal, 2025. "Persistent yet ameliorable shocks to female entrepreneurship: Experimental evidence from Kenya," Journal of Development Economics, Elsevier, vol. 177(C).
    7. Bernardus Van Doornik & David Schoenherr & Janis Skrastins, 2025. "Escaping Death: individual mobility and female mortality," Working Papers Series 621, Central Bank of Brazil, Research Department.
    8. Abay, Kibrom A. & Abdelfattah, Lina Alaaeldin & Abushama, Hala & Kirui, Oliver K. & Nigus, Halefom Yigzaw & Siddig, Khalid, 2025. "Can digital cash transfers serve those in active conflict? Evidence from a randomized intervention in Sudan," IFPRI discussion papers 2374, International Food Policy Research Institute (IFPRI).
    9. Seema Jayachandran, 2021. "Social Norms as a Barrier to Women’s Employment in Developing Countries," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 69(3), pages 576-595, September.
    10. Berber Kramer & Carly Trachtman, 2024. "Gender dynamics in seed systems: an integrative review of seed promotion interventions in Africa," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 16(1), pages 19-45, February.
    11. Michael Callen & Miguel Fajardo-Steinhäuser & Michael G. Findley & Tarek Ghani, 2025. "Can Digital Aid Deliver During Humanitarian Crises?," Management Science, INFORMS, vol. 71(11), pages 9730-9748, November.
    12. Eliana Carranza & Aletheia Donald & Florian Grosset‐Touba & Supreet Kaur, 2025. "The Social Tax: Redistributive Pressure and Labor Supply," Econometrica, Econometric Society, vol. 93(6), pages 2273-2308, November.
    13. Wicker, Till & Dalton, Patricio & van Soest, Daan, 2025. "Mental Accounting and Cash Transfers : Experimental Evidence from a Humanitarian Setting," Discussion Paper 2025-006, Tilburg University, Center for Economic Research.
    14. Giulia Greco & Selim Gulesci & Pallavi Prabhakar & Munshi Sulaiman, 2025. "(Digital) cash transfers, privacy and women's empowerment: Evidence from Uganda," Trinity Economics Papers tep0225, Trinity College Dublin, Department of Economics.
    15. Carlotta Nani, 2024. "Perceived abilities and gender stereotypes within the household: experimental evidence from Bangladesh," IHEID Working Papers 19-2024, Economics Section, The Graduate Institute of International Studies.
    16. Wicker, Till & Dalton, Patricio & van Soest, Daan, 2025. "Mental Accounting and Cash Transfers : Experimental Evidence from a Humanitarian Setting," Other publications TiSEM a92dc757-d6b5-4802-8639-c, Tilburg University, School of Economics and Management.
    17. Lee, Jean N. & Morduch, Jonathan & Ravindran, Saravana & Shonchoy, Abu S., 2024. "The social meaning of mobile money: Earmarking reduces the willingness to spend in migrant households," Journal of Economic Behavior & Organization, Elsevier, vol. 221(C), pages 675-688.
    18. Bhukta, Rikhia & Jha, Chandan Kumar & Joshi, Swarup & Sedai, Ashish K., 2025. "Does bank expansion reduce domestic violence? Causal evidence from India," Journal of Economic Behavior & Organization, Elsevier, vol. 231(C).
    19. Campos, Francisco Moraes Leitao & Conconi, Adriana & Davies, Elwyn & Gassier, Marine & Goldstein, Markus, 2025. "Mitigating the Impact of Household Expropriation on Female Entrepreneurship : Experimental Evidence from Ghana," Policy Research Working Paper Series 11111, The World Bank.

    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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