The Effect of Gender-Based Returns to Borrowing on Intra-Household Resource Allocation in Rural Bangladesh
Income from rural microcredit borrowing can empower women and consequently lead to investments in children’s education and health. This article examines the effect of male and female self-employment returns to borrowing in rural Bangladesh on intra-household resource allocation and decision making abilities and how these effects differ with different borrowing sources. Household expenditure patterns measure intra-household allocation. The results show that female borrowers are better able to allocate their income toward goods more valuable to them and make major household decisions when their income increases. This serves as evidence of increased empowerment or bargaining power of rural women in Bangladesh.
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