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Microfinance and gender empowerment

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  • Ngo, Thi Minh-Phuong
  • Wahhaj, Zaki

Abstract

In this paper, we develop a theoretical model of household production, bargaining and credit to analyse how access to microcredit affects intra-household decision-making and welfare, and identify conditions under which female household members are most likely to benefit. We show that, consistent with ethnographic accounts of the impact of microcredit programmes on poor households, access to loans can lead to a variety of outcomes for intra-household decision-making and welfare depending on initial conditions and that, in some instances, women borrowers may experience a decline in welfare. We identify two instances in which a woman is most likely to benefit: when there is scope for investing the loan profitably in a joint activity, and when a large share of the household budget is devoted to household public goods.

Suggested Citation

  • Ngo, Thi Minh-Phuong & Wahhaj, Zaki, 2012. "Microfinance and gender empowerment," Journal of Development Economics, Elsevier, vol. 99(1), pages 1-12.
  • Handle: RePEc:eee:deveco:v:99:y:2012:i:1:p:1-12
    DOI: 10.1016/j.jdeveco.2011.09.003
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    Cited by:

    1. Ngo, Thi Minh-Phuong & Wahhaj, Zaki, 2012. "Microfinance and gender empowerment," Journal of Development Economics, Elsevier, vol. 99(1), pages 1-12.
    2. Akoété Ega Agbodji & Yélé Maweki Batana & Dénis Ouedraogo, 2015. "Gender inequality in multidimensional welfare deprivation in West Africa: The case of Burkina Faso and Togo," International Journal of Social Economics, Emerald Group Publishing, vol. 42(11), pages 980-1004, November.
    3. Shah, Deepak & Panigrahi, Sangram, 2015. "Determinants of Participation of Women in Self-Help Groups (SGHs) and Credit Delivery from Formal and Informal Sources to BPL Households in Odisha," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 70(3).
    4. Chrysovalantis Gaganis, 2016. "Assessing the overall performance of microfinance institutions," International Journal of Banking, Accounting and Finance, Inderscience Enterprises Ltd, vol. 7(1), pages 52-83.
    5. Luan, D. X. & Bauer, S. & Kuhl, R., 2016. "Income Impacts of Credit on Accessed Households in Rural Vietnam: Do Various Credit Sources Perform Differently?," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 8(1), March.
    6. Agénor, Pierre-Richard & Canuto, Otaviano, 2015. "Gender equality and economic growth in Brazil: A long-run analysis," Journal of Macroeconomics, Elsevier, vol. 43(C), pages 155-172.
    7. repec:eaa:eerese:v:17:y2017:i:2_4 is not listed on IDEAS
    8. Paolo Casini & Olivia Riera & Paulo Santos Monteiro, 2015. "Labor market effects of improved access to credit among the poor: evidence from Cape Verde," LICOS Discussion Papers 36215, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    9. Maren Duvendack & Richard Palmer-Jones & Jos Vaessen, 2014. "Meta-analysis of the impact of microcredit on women's control over household decisions: methodological issues and substantive findings," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 6(2), pages 73-96, June.
    10. Klaus Abbink & Asadul Islam & Chau Nguyen, 2016. "Whose voice matters? An experimental examination of women empowerment in microfinance," Monash Economics Working Papers 40-16, Monash University, Department of Economics.
    11. Weber, Olaf & Ahmad, Adnan, 2014. "Empowerment Through Microfinance: The Relation Between Loan Cycle and Level of Empowerment," World Development, Elsevier, vol. 62(C), pages 75-87.

    More about this item

    Keywords

    Microfinance; Gender; Intra-household bargaining;

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D1 - Microeconomics - - Household Behavior
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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