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Being Patient with Microfinance: The Impact of Training on Indian Self Help Groups

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  • Bali Swain, Ranjula

    () (Department of Economics)

  • Varghese, Adel

    () (Texas A & M University)

Abstract

We evaluate the impact of training provided by facilitators of Self Help Groups (SHGs). This evaluation provides one of the first studies of the impact of ‘microfinance plus,’ or the disbursement of services beyond credit. Indian SHGs are mainly NGO-formed microfinance groups but funded by commercial banks. We correct for membership selection bias with data on current as well as future SHG members. We then account for potential training endogeneity with propensity score matching. Regression and unadjusted matching results indicate that training does not aid in asset accumulation but can reverse the negative impact of credit on income. However, regression adjusted matching which controls for both participation and training selection bias reveals that training impacts assets but not income. These results are robust to sensitivity analyses performed on these estimates.

Suggested Citation

  • Bali Swain, Ranjula & Varghese, Adel, 2010. "Being Patient with Microfinance: The Impact of Training on Indian Self Help Groups," Working Paper Series 2010:22, Uppsala University, Department of Economics.
  • Handle: RePEc:hhs:uunewp:2010_022
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    File URL: http://uu.diva-portal.org/smash/get/diva2:380286/FULLTEXT01.pdf
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    References listed on IDEAS

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    1. Swain, Ranjula Bali & Varghese, Adel, 2009. "Does Self Help Group Participation Lead to Asset Creation?," World Development, Elsevier, vol. 37(10), pages 1674-1682, October.
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    More about this item

    Keywords

    India; microfinance; training; impact studies; Self Help Groups;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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