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A breakthrough in women's bargaining power: the impact of microcredit

Listed author(s):
  • Lutfun N. Khan Osmani

    (School of Management and Economics, The Queen's University of Belfast, UK)

Registered author(s):

    This paper attempts to test empirically whether access to micro-credit can help poor rural women to improve their bargaining power within the household. The empirical measures of women's bargaining power, or empowerment, used in this paper are underpinned by a bargaining model of the household. By using survey data on the borrowers of the Grameen Bank of Bangladesh and by adopting a methodology that allows for the possibility of self-selection, this study shows that targeted micro-credit can have a significantly positive effect on women's bargaining power within the household. Copyright © 2007 John Wiley & Sons, Ltd.

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    File URL: http://hdl.handle.net/10.1002/jid.1356
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    Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

    Volume (Year): 19 (2007)
    Issue (Month): 5 ()
    Pages: 695-716

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    Handle: RePEc:wly:jintdv:v:19:y:2007:i:5:p:695-716
    DOI: 10.1002/jid.1356
    Contact details of provider: Web page: http://www3.interscience.wiley.com/journal/5102/home

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    1. Alderman, Harold, et al, 1995. "Unitary versus Collective Models of the Household: Is It Time to Shift the Burden of Proof?," World Bank Research Observer, World Bank Group, vol. 10(1), pages 1-19, February.
    2. Pitt, M.M. & Khandker, S.R., 1996. "Household and Intrahousehold Impact of the Grameen Bank and Similar Targeted Credit Programs in Bangladesh," World Bank - Discussion Papers 320, World Bank.
    3. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February.
    4. Hausman, Jerry A., 1983. "Specification and estimation of simultaneous equation models," Handbook of Econometrics,in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 1, chapter 7, pages 391-448 Elsevier.
    5. 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.
    6. Hossain, Mahabub, 1988. "Credit for alleviation of rural poverty: the Grameen Bank in Bangladesh," Research reports 65, International Food Policy Research Institute (IFPRI).
    7. 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.
    8. 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 333-349, June.
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