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Financial inclusion and women’s bargaining power: evidence from India

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  • Julia Jose
  • Javed Younas

Abstract

Extant literature links the higher bargaining power of women with favorable outcomes for the health and education of children, lower domestic abuse, and enhanced socioeconomic status. This paper examines the interplay between the financial inclusion of a woman and her intra-household bargaining power. The theoretical model predicts an ambiguous effect, wherein improvements in her well-being depend on her husband’s reaction. Using household-level data from India, we show that a woman’s well-being improves in many ways when she has a bank account. We use two unique instruments to address the issue of simultaneity. Placebo tests also certify our results. Our findings suggest that removing financial barriers for women increases their independence and say in household decision-making.

Suggested Citation

  • Julia Jose & Javed Younas, 2023. "Financial inclusion and women’s bargaining power: evidence from India," International Review of Applied Economics, Taylor & Francis Journals, vol. 37(1), pages 76-92, January.
    • Handle: RePEc:taf:irapec:v:37:y:2023:i:1:p:76-92
    DOI: 10.1080/02692171.2022.2044459
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