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A method to monitor poverty dynamics among microfinance clients: An example using survey data from Bangladesh

Author

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  • Hernandez-Hernandez, Emilio
  • Schreiner, Mark

Abstract

This article presents a practical methodology to monitor poverty changes among microfinance clients using available household panel data. As an example, it presents an estimation of the net number of people that rose above the $1/day poverty line while members of Grameen Bank and BRAC during 1990 to 2006. The proposed method contributes to on-going efforts from microfinance practitioners to verify whether their clients are moving out of poverty and validate management strategies aiming to target new poor clients, and increase their share of poor clients over time. Estimates show that about 6.6 million people rose above the $1/day poverty line in 1990-2006 while members of Grameen or BRAC. This represents about 40 percent of the total number of poor people that crossed this poverty line during the same time period at the national level, which validates targeting strategies to reach the poor.

Suggested Citation

  • Hernandez-Hernandez, Emilio & Schreiner, Mark, 2012. "A method to monitor poverty dynamics among microfinance clients: An example using survey data from Bangladesh," MPRA Paper 38977, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:38977
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    File URL: https://mpra.ub.uni-muenchen.de/38977/1/MPRA_paper_38977.pdf
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    References listed on IDEAS

    as
    1. Karlan, Dean S. & Zinman, Jonathan, 2009. "Expanding Microenterprise Credit Access: Using Randomized Supply Decisions to Estimate the Impacts in Manila," CEPR Discussion Papers 7396, C.E.P.R. Discussion Papers.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Microfinance; poverty reduction; poverty monitoring; Bangaldesh;

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology

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