IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Microfinance and gender empowerment

  • Ngo, Thi Minh-Phuong
  • Wahhaj, Zaki

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.

If 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.

File URL: http://www.sciencedirect.com/science/article/pii/S0304387811000915
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 99 (2012)
Issue (Month): 1 ()
Pages: 1-12

as
in new window

Handle: RePEc:eee:deveco:v:99:y:2012:i:1:p:1-12
Contact details of provider: Web page: http://www.elsevier.com/locate/devec

References listed on IDEAS
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.:

as in new window
  1. Bergstrom, T., 1995. "Economics of a Family Way," Papers 95-07, Michigan - Center for Research on Economic & Social Theory.
  2. Haddad, Lawrence & Kanbur, Ravi, 1990. "Are better off households more unequal or less unequal ?," Policy Research Working Paper Series 373, The World Bank.
  3. Selten, Reinhard & Stoecker, Rolf, 1986. "End behavior in sequences of finite Prisoner's Dilemma supergames A learning theory approach," Journal of Economic Behavior & Organization, Elsevier, vol. 7(1), pages 47-70, March.
  4. Tassel, Eric Van, 2004. "Household bargaining and microfinance," Journal of Development Economics, Elsevier, vol. 74(2), pages 449-468, August.
  5. Ted Bergstrom, 1995. "Economic in a Family Way," Papers _028, University of Michigan, Department of Economics.
  6. Goetz, Anne Marie & Gupta, Rina Sen, 1996. "Who takes the credit? Gender, power, and control over loan use in rural credit programs in Bangladesh," World Development, Elsevier, vol. 24(1), pages 45-63, January.
  7. Thomas, D., 1989. "Intra-Household Resource Allocation: An Inferential Approach," Papers 586, Yale - Economic Growth Center.
  8. Robert Cull & Asli Demirgüç-Kunt & Jonathan Morduch, 2009. "Microfinance Meets the Market," Journal of Economic Perspectives, American Economic Association, vol. 23(1), pages 167-92, Winter.
  9. Zaki Wahhaj & Thi Minh-Phuong Ngo, 2010. "Microfinance and Gender Empowerment," Economics Series Working Papers CSAE WPS/2010-34, University of Oxford, Department of Economics.
  10. Eric Edmonds, 2007. "Child Labor," Working Papers id:988, eSocialSciences.
  11. Paul Mosley & Linda Mayoux, 1999. "Questioning virtuous spirals: micro-finance and women's empowerment in Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(7), pages 957-984.
  12. Johnson, Susan, 2004. "Gender Norms in Financial Markets: Evidence from Kenya," World Development, Elsevier, vol. 32(8), pages 1355-1374, August.
  13. Pollak, Robert A, 1994. "For Better or Worse: The Roles of Power in Models of Distribution within Marriage," American Economic Review, American Economic Association, vol. 84(2), pages 148-52, May.
  14. Chen, Zhiqi & Woolley, Frances, 2001. "A Cournot-Nash Model of Family Decision Making," Economic Journal, Royal Economic Society, vol. 111(474), pages 722-48, October.
  15. Suresh de Mel & David McKenzie & Christopher Woodruff, 2009. "Are Women More Credit Constrained? Experimental Evidence on Gender and Microenterprise Returns," American Economic Journal: Applied Economics, American Economic Association, vol. 1(3), pages 1-32, July.
  16. Beatriz Armendariz & Nigel Roome, 2008. "Empowering women via microfinance in fragile states," Working Papers CEB 08-001.RS, ULB -- Universite Libre de Bruxelles.
  17. Lundberg, Shelly & Pollak, Robert A, 1993. "Separate Spheres Bargaining and the Marriage Market," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 988-1010, December.
  18. Kabeer, Naila, 2001. "Conflicts Over Credit: Re-Evaluating the Empowerment Potential of Loans to Women in Rural Bangladesh," World Development, Elsevier, vol. 29(1), pages 63-84, January.
  19. Ariel Rubinstein, 2010. "Perfect Equilibrium in a Bargaining Model," Levine's Working Paper Archive 252, David K. Levine.
  20. Cheryl R. Doss & John G. McPeak, 2005. "Are Household Production Decisions Cooperative? Evidence on Pastoral Migration and Milk Sales from Northern Kenya," Working Papers 906, Economic Growth Center, Yale University.
  21. Pitt, Mark M & Khandker, Shahidur R & Cartwright, Jennifer, 2006. "Empowering Women with Micro Finance: Evidence from Bangladesh," Economic Development and Cultural Change, University of Chicago Press, vol. 54(4), pages 791-831, July.
  22. Shahidur R. Khandker, 2005. "Microfinance and Poverty: Evidence Using Panel Data from Bangladesh," World Bank Economic Review, World Bank Group, vol. 19(2), pages 263-286.
  23. Silvia Pezzini, 2005. "The Effect of Women's Rights on Women's Welfare: Evidence from a Natural Experiment," Economic Journal, Royal Economic Society, vol. 115(502), pages C208-C227, 03.
  24. Mullany, Britta C. & Hindin, Michelle J. & Becker, Stan, 2005. "Can women's autonomy impede male involvement in pregnancy health in Katmandu, Nepal?," Social Science & Medicine, Elsevier, vol. 61(9), pages 1993-2006, November.
  25. Ravallion, Martin, 2008. "Evaluation in the practice of development," Policy Research Working Paper Series 4547, The World Bank.
  26. Suresh Sundaresan (ed.), 2008. "Microfinance," Books, Edward Elgar, number 13148, July.
  27. Hashemi, Syed M. & Schuler, Sidney Ruth & Riley, Ann P., 1996. "Rural credit programs and women's empowerment in Bangladesh," World Development, Elsevier, vol. 24(4), pages 635-653, April.
  28. Ligon, Ethan, 2002. "Dynamic bargaining in households (with an application to Bangladesh)," CUDARE Working Paper Series 972, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
  29. repec:cdl:agrebk:2221095 is not listed on IDEAS
  30. Ligon, Ethan, 2002. "Dynamic bargaining in households (with application to Bangladesh)," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt1t52k4c5, Department of Agricultural & Resource Economics, UC Berkeley.
  31. Marcel Fafchamps & Bereket Kebede & Agnes R. Quisumbing, 2009. "Intrahousehold Welfare in Rural Ethiopia," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(4), pages 567-599, 08.
  32. Adam, Christopher & Hoddinott, John & Ligon, Ethan A., 2011. "Dynamic intrahousehold bargaining, matrimonial property law and suicide in Canada," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt4dm5w8v1, Department of Agricultural & Resource Economics, UC Berkeley.
  33. Johnson, Eric J. & Camerer, Colin & Sen, Sankar & Rymon, Talia, 2002. "Detecting Failures of Backward Induction: Monitoring Information Search in Sequential Bargaining," Journal of Economic Theory, Elsevier, vol. 104(1), pages 16-47, May.
  34. Lundberg, Shelly & Pollak, Robert A, 1994. "Noncooperative Bargaining Models of Marriage," American Economic Review, American Economic Association, vol. 84(2), pages 132-37, May.
  35. Duncan Thomas, 1994. "Like Father, like Son; Like Mother, like Daughter: Parental Resources and Child Height," Journal of Human Resources, University of Wisconsin Press, vol. 29(4), pages 950-988.
  36. McElroy, Marjorie B & Horney, Mary Jean, 1981. "Nash-Bargained Household Decisions: Toward a Generalization of the Theory of Demand," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 22(2), pages 333-49, June.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:eee:deveco:v:99:y:2012:i:1:p:1-12. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.