Reducing Vulnerability through Microfinance: Evidence from Indian Self Help Group Program
We investigate if participation in Indian Self Help Group microfinance program (SHG) results in reducing vulnerability. Vulnerability estimates are constructed using cross-sectional SHG rural household survey data, collected in 2003. The potential selection bias is eliminated by propensity score matching to estimate the average treatment on treated effect using nearest neighbour matching and local linear regression algorithm. We find that despite a disproportionately high percentage of poor in the SHG members, vulnerability is not significantly different between the SHG and non-SHG members. This result is found to be robust using sensitivity analysis and Rosenbaum bounds method.
|Date of creation:||10 Dec 2010|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden|
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- Bali Swain, Ranjula & Floro, Maria, 2007.
"Effect of Microfinance on Vulnerability, Poverty and Risk in Low Income Households,"
Working Paper Series
2007:31, Uppsala University, Department of Economics.
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- Bali Swain, Ranjula & Varghese, Adel, 2008. "Does Self Help Group Participation Lead to Asset Creation?," Working Paper Series 2008:5, Uppsala University, Department of Economics.
- Günther, Isabel & Harttgen, Kenneth, 2009. "Estimating Households Vulnerability to Idiosyncratic and Covariate Shocks: A Novel Method Applied in Madagascar," World Development, Elsevier, vol. 37(7), pages 1222-1234, July.
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