IDEAS home Printed from https://ideas.repec.org/p/lvl/pmmacr/2016-01.html
   My bibliography  Save this paper

The impact of a rural microcredit scheme targeting women on household vulnerability and empowerment: evidence from South West Nigeria

Author

Listed:
  • Damilola Olajide
  • Divine Ikenwilo
  • Kehinde Omotosho
  • Ngozi Ibeji
  • Olufemi Obembe

Abstract

The rapid expansion of microcredit in recent years is informed by the belief that removal of constraints to credit access facing the poor, particularly women, through microcredit can improve their well-being and ultimately help them out of poverty. However, the evidence supporting these promises has been largely inconclusive. This study examined the impact of a rural microcredit scheme targeting women on vulnerability and empowerment of the beneficiaries and their household members. The study was conducted in collaboration with the Amoye Microfinance Bank, Ikere Ekiti, Nigeria. Data was collected from a follow-up survey of 2,938 applicants, comprising 1,555 women who were successful (treated group) and 1,383 women who were unsuccessful (control group), and 8,418 household members. Eligibility for the microcredit was based on a credit scoring system. A regression discontinuity design was adopted to exploit the information around the eligibility threshold to identify the program impact. Vulnerability and empowerment were measured from five domains. The results showed that beneficiaries of the microcredit were significantly less vulnerable than non-beneficiaries, but not all of the measurement domains were significant. Also, beneficiaries were significantly more empowered than non-beneficiaries, and all of the measurement domains were significant. Additionally, indicators of labour market participation were significantly higher for household members of beneficiaries than for household members of non-beneficiaries. The analysis extended to examining associations between the estimated impacts and some institutional factors such as pricing, repayment method, loan duration and use of loan. The results suggest that these factors are potentially relevant for the aspect of design of microcredit schemes. The findings further inform the policy debate on the promises of microfinance, specifically relating to the multidimensional nature of the impacts, effects on family members of beneficiaries, and the relevance of institutional factors for microcredit design.

Suggested Citation

  • Damilola Olajide & Divine Ikenwilo & Kehinde Omotosho & Ngozi Ibeji & Olufemi Obembe, 2016. "The impact of a rural microcredit scheme targeting women on household vulnerability and empowerment: evidence from South West Nigeria," Working Papers PMMA 2016-01, PEP-PMMA.
  • Handle: RePEc:lvl:pmmacr:2016-01
    as

    Download full text from publisher

    File URL: https://portal.pep-net.org/documents/download/id/25698
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Microcredit; Regression Discontinuity Design; Financial inclusion; Vulnerability; Female empowerment.;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lvl:pmmacr:2016-01. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/cdvlvca.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuel Paradis (email available below). General contact details of provider: https://edirc.repec.org/data/cdvlvca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.