Microfinance and Female Group Action in Bangladesh

This paper provides evidence that participation in microfinance programs may increase the likelihood of female group action against domestic violence and spousal abandonment. Although female empowerment has been an explicit target of many microfinance programs, the literature remains conflicted regarding the magnitude and direction of impact. Using multiple estimation methods with data from Bangladesh, I find that women from villages with microfinance programs are substantially more likely than women from non†program villages to have taken group action by publicly protesting when they observed a woman being beaten, abandoned or divorced. Taking advantage of eligibility requirements for program participation, I further show that women from program villages who are eligible to participate are substantially more likely than non†eligible women from the same village to have taken group action, which suggests that these effects are in fact related to the microfinance programs themselves.