IDEAS home Printed from https://ideas.repec.org/a/ags/eeaeje/343220.html

The Impact of Micro-Credit Intervention on Female Labor Force Participation in Income-Generating Activities in Rural Households of North Wollo, Ethiopia

Author

Listed:
  • Eshetu, Haimanot
  • Legesse, Belaineh
  • Nuru, Seid
  • Beyene, Fekadu

Abstract

We examined the impact of micro-credit on female labor participation in income-generating activities in rural households of North Wollo, Ethiopia. The study employed selection and average treatment effect models to determine the effect and impact of credit intervention on the decision of women to participate in income-generating activities and their level of engagement. A total of 460 households, participants and nonparticipants of the credit scheme, from three woredas of North Wollo Administrative zone was selected using systematic random sampling. Using the primary data, the study found that micro-credit has positive and significant effect both on women’s decisions to participate in income-generating activities, and the magnitude of time spent on such activities. In particular, the study showed that, on average, women who had access to credit facilities spent 4.45 more hours of time on income-generating activities than the control group. The average time spent by women in the control group in income-generating activities was 1.39 hours. The average treatment effect (ATE) was found to be considerably greater than the average treatment effect among the treated (ATET) implying that poor women with less entrepreneurial capabilities had been targeted for credit participation. Future policies in micro-credit should consider targeting women with better potential for succeeding in business despite their initial income status. The majority of credit participant women were found to be engaged in better and newly developed income-generating activities such as animal fattening and rearing, poultry, bee-keeping, vegetable cultivation and business-related activities. However, a considerable number of women were also engaged in traditional activities such as fire-wood collection and weeding to generate income. Such activities are borderline cases to influence the status of women in intra-household resource allocation: the study noted that where women engage the choice of economic activities needs consideration.

Suggested Citation

  • Eshetu, Haimanot & Legesse, Belaineh & Nuru, Seid & Beyene, Fekadu, 2018. "The Impact of Micro-Credit Intervention on Female Labor Force Participation in Income-Generating Activities in Rural Households of North Wollo, Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 27(02), October.
    • Handle: RePEc:ags:eeaeje:343220
    DOI: 10.22004/ag.econ.343220
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/343220/files/The%20Impact%20of%20Micro-Credit%20Intervention.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.343220?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Rania Antonopoulos, 2007. "The Right to a Job, the Right Types of Projects: Employment Guarantee Policies from a Gender Perspective," Economics Working Paper Archive wp_516, Levy Economics Institute.
    2. Alessandro Tarozzi & Jaikishan Desai & Kristin Johnson, 2015. "The Impacts of Microcredit: Evidence from Ethiopia," American Economic Journal: Applied Economics, American Economic Association, vol. 7(1), pages 54-89, January.
    3. Christophe J. Nordman & François-Charles Wolff, 2009. "Gender differences in pay in African manufacturing firms," Working Papers hal-00421227, HAL.
    4. Floro, Maria Sagrario, 1995. "Economic restructuring, gender and the allocation of time," World Development, Elsevier, vol. 23(11), pages 1913-1929, November.
    5. Rania Antonopoulos & Indira Hirway, 2010. "Unpaid Work and the Economy," Palgrave Macmillan Books, in: Rania Antonopoulos & Indira Hirway (ed.), Unpaid Work and the Economy, chapter 1, pages 1-21, Palgrave Macmillan.
    6. Nidhiya Menon & Yana van der Meulen Rodgers, 2011. "How Access to Credit Affects Self-employment: Differences by Gender during India's Rural Banking Reform," Journal of Development Studies, Taylor & Francis Journals, vol. 47(1), pages 48-69.
    7. Gershuny, Jonathan, 2000. "Changing Times: Work and Leisure in Postindustrial Society," OUP Catalogue, Oxford University Press, number 9780198287872.
    8. Allen M. Parkman, 2004. "Bargaining Over Housework," American Journal of Economics and Sociology, Wiley Blackwell, vol. 63(4), pages 765-794, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yuta Masuda & Lea Fortmann & Mary Gugerty & Marla Smith-Nilson & Joseph Cook, 2014. "Pictorial Approaches for Measuring Time Use in Rural Ethiopia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 115(1), pages 467-482, January.
    2. Burca Kizilirmak & Emel Memis, 2019. "The Unequal Burden of Income Poverty on Time Use in South Africa," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 5(2), pages 31-51, December.
    3. Seçil A. Kaya Bahçe & Emel Memis, 2013. "Estimating the Impact of the 2008--09 Economic Crisis on Work Time in Turkey," Feminist Economics, Taylor & Francis Journals, vol. 19(3), pages 181-207, July.
    4. Lamia Kandil & Hélène Perivier, 2017. "La division sexuée du travail dans les couples selon le statut marital en France - une étude à partir des enquêtes emploi du temps de 1985-1986, 1998-1999, et 2009-2010," Documents de Travail de l'OFCE 2017-03, Observatoire Francais des Conjonctures Economiques (OFCE).
    5. Stella Chatzitheochari & Kimberly Fisher & Emily Gilbert & Lisa Calderwood & Tom Huskinson & Andrew Cleary & Jonathan Gershuny, 2018. "Using New Technologies for Time Diary Data Collection: Instrument Design and Data Quality Findings from a Mixed-Mode Pilot Survey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 137(1), pages 379-390, May.
    6. Lucia Dalla Pellegrina & Giorgio Di Maio & Paolo Landoni & Emanuele Rusinà, 2021. "Money management and entrepreneurial training in microfinance: impact on beneficiaries and institutions," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 1049-1085, October.
    7. Emily Breza & Cynthia Kinnan, 2021. "Measuring the Equilibrium Impacts of Credit: Evidence from the Indian Microfinance Crisis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(3), pages 1447-1497.
    8. Fischer, Ilan & Sullivan, Oriel, 2007. "Evolutionary modeling of time-use vectors," Journal of Economic Behavior & Organization, Elsevier, vol. 62(1), pages 120-143, January.
    9. K. Gayathri Reddy & Varsha, P. S. & L. N. Sudheendra Rao & Amit Kumar, 2019. "Exploring dimension, perceived individual tension and capacity building measure of women empowerment in India," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 9(5), pages 111-131, May.
    10. Booth, A.L. & van Ours, J.C., 2007. "Job Satisfaction And Family Happiness : The Part-Time Work Problem," Discussion Paper 2007-69, Tilburg University, Center for Economic Research.
    11. N'dri, Lasme Mathieu & Kakinaka, Makoto, 2020. "Financial inclusion, mobile money, and individual welfare: The case of Burkina Faso," Telecommunications Policy, Elsevier, vol. 44(3).
    12. Aguilar-Gomez, Sandra & Arceo-Gomez, Eva O. & De la Cruz Toledo, Elia, 2026. "Inside the black box of child penalties: Unpaid work and household structure," Journal of Development Economics, Elsevier, vol. 178(C).
    13. repec:osf:osfxxx:nwp8k_v1 is not listed on IDEAS
    14. Daniel Bjorkegren & Joshua Blumenstock & Omowunmi Folajimi-Senjobi & Jacqueline Mauro & Suraj R. Nair, 2022. "Instant Loans Can Lift Subjective Well-Being: A Randomized Evaluation of Digital Credit in Nigeria," Papers 2202.13540, arXiv.org.
    15. Cécile Brousse, 2015. "La vie quotidienne en France depuis 1974. Les enseignements de l'enquête Emploi du temps," Économie et Statistique, Programme National Persée, vol. 478(1), pages 79-117.
    16. Laura Langner, 2022. "Desperate Housewives and Happy Working Mothers: Are Parent-Couples with Equal Income More Satisfied throughout Parenthood? A Dyadic Longitudinal Study," Work, Employment & Society, British Sociological Association, vol. 36(1), pages 80-100, February.
    17. Rickard Eriksson & Magnus Nermo, 2010. "Care for Sick Children as a Proxy for Gender Equality in the Family," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 97(3), pages 341-356, July.
    18. Charles S. Tundui & Hawa P. Tundui, 2018. "Examining the effect of child labour in the profitability of women owned enterprises: a case of microcredit supported enterprises in Tanzania," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-16, December.
    19. Naomi Friedman-Sokuler & Claudia Senik, 2022. "Time-Use and Subjective Well-Being: Is there a Preference for Activity Diversity?," PSE Working Papers halshs-03828272, HAL.
    20. Manfred Garhammer, 2002. "Pace of Life and Enjoyment of Life," Journal of Happiness Studies, Springer, vol. 3(3), pages 217-256, September.
    21. Amrita Chhachhi & Saumyajit Bhattacharya, 2014. "Is Labour Still a Relevant Category for Praxis? Critical Reflections on Some Contemporary Discourses on Work and Labour in Capitalism," Development and Change, International Institute of Social Studies, vol. 45(5), pages 941-962, September.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:eeaeje:343220. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eeaa2ea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.