IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/97052.html

Access to Formal Credit and Gender Income Gap: The Case of Farmers in Cambodia

Author

Listed:
  • SAM, Vichet

Abstract

This article analyzes the factors that drive the gender income difference among farmers in Cambodia with a focus on the access to formal credit, using the FinScope survey data. First, an Ordinary Least Square regression (OLS) is used to investigate the main determinants of farmers’ income, while an instrumental variable approach (IV) is estimated to check the causal effect of the access to formal credit on earnings. Next, the Blinder-Oaxaca technique is employed to decompose the gender earnings gap. Results from OLS regression show that individual education and health, farm size and other inputs, irrigation system and weather conditions, access to market and formal credit are strongly associated with farmers’ earnings, while the positive impact of access to formal credit is also confirmed by the IV regression at 5% significant level. These results suggest that improving infrastructure and formal credit access in the rural areas play a critical role in increasing farmers’ income. Then, based on the Blinder-Oaxaca decomposition technique, most of gender earnings difference is due to the endowment effect in favor of male farmers such as education, farm size and volume of work hours. Access to formal credit also contributes to the gender earnings gap, yet not in terms of endowment but coefficient effect, as a higher return to credit access for male farmers is observed. This could be due to the levels of education and financial literacy that are higher for men, allowing them to use the formal credit better. Closing the gap in education and financial literacy would therefore reduce their earnings gap. Discrimination against female farmers, not in terms of credit access, but in loan amount should be worth to consider as well, as the median of loan amounts of male farmers is higher than those of female. If such discrimination exists, it could also limit the women’s capacity to manage and invest in their farms effectively, and thus, the return to credit access must be lower for female farmers.

Suggested Citation

  • SAM, Vichet, 2019. "Access to Formal Credit and Gender Income Gap: The Case of Farmers in Cambodia," MPRA Paper 97052, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:97052
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/97052/1/MPRA_paper_97052.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fletschner, Diana, 2009. "Rural Women's Access to Credit: Market Imperfections and Intrahousehold Dynamics," World Development, Elsevier, vol. 37(3), pages 618-631, March.
    2. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    3. Akter, Sonia & Rutsaert, Pieter & Luis, Joyce & Htwe, Nyo Me & San, Su Su & Raharjo, Budi & Pustika, Arlyna, 2017. "Women’s empowerment and gender equity in agriculture: A different perspective from Southeast Asia," Food Policy, Elsevier, vol. 69(C), pages 270-279.
    4. Huynh, Phu., 2016. "Assessing the gender pay gap in Asia's garment sector," ILO Working Papers 994904713402676, International Labour Organization.
    5. Ben Jann, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LLC, vol. 8(4), pages 453-479, December.
    6. Adams, Renée & Almeida, Heitor & Ferreira, Daniel, 2009. "Understanding the relationship between founder-CEOs and firm performance," Journal of Empirical Finance, Elsevier, vol. 16(1), pages 136-150, January.
    7. SAM, Vichet, 2019. "Formal Financial Inclusion in Cambodia: What are the Key Barriers and Determinants?," MPRA Paper 94000, University Library of Munich, Germany.
    8. Stock, James H & Wright, Jonathan H & Yogo, Motohiro, 2002. "A Survey of Weak Instruments and Weak Identification in Generalized Method of Moments," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(4), pages 518-529, October.
    9. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, January.
    10. Doris Weichselbaumer & Rudolf Winter‐Ebmer, 2005. "A Meta‐Analysis of the International Gender Wage Gap," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 479-511, July.
    11. Diagne, Aliou & Zeller, Manfred, 2001. "Access to credit and its impact on welfare in Malawi," Research reports 116, International Food Policy Research Institute (IFPRI).
    12. Seema Jayachandran, 2015. "The Roots of Gender Inequality in Developing Countries," Annual Review of Economics, Annual Reviews, vol. 7(1), pages 63-88, August.
    13. Un, B. & Pech, S. & Baran, E., 2015. "Aquatic agricultural systems in Cambodia: National situation analysis," Monographs, The WorldFish Center, number 40548, April.
    14. Ali, Daniel & Bowen, Derick & Deininger, Klaus & Duponchel, Marguerite, 2016. "Investigating the Gender Gap in Agricultural Productivity: Evidence from Uganda," World Development, Elsevier, vol. 87(C), pages 152-170.
    15. Fengxia Dong & Jing Lu & Allen M. Featherstone, 2012. "Effects of credit constraints on household productivity in rural China," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 72(3), pages 402-415, November.
    16. Florent Kinkingninhoun-Mêdagbé & Aliou Diagne & Franklin Simtowe & Afiavi Agboh-Noameshie & Patrice Adégbola, 2010. "Gender discrimination and its impact on income, productivity, and technical efficiency: evidence from Benin," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 27(1), pages 57-69, March.
    17. Sara Horrell & Pramila Krishnan, 2007. "Poverty and productivity in female-headed households in Zimbabwe," Journal of Development Studies, Taylor & Francis Journals, vol. 43(8), pages 1351-1380.
    18. Donna Gilleskie & Denise Hoffman, 2014. "Health Capital and Human Capital as Explanations for Health-Related Wage Disparities," Journal of Human Capital, University of Chicago Press, vol. 8(3), pages 235-279.
    19. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    20. Chun, Hyunbae & Lee, Injae, 2001. "Why Do Married Men Earn More: Productivity or Marriage Selection?," Economic Inquiry, Western Economic Association International, vol. 39(2), pages 307-319, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Punlork Men & Lyda Hok & Panchit Seeniang & B. Jan Middendorf & Rapee Dokmaithes, 2024. "Identifying Credit Accessibility Mechanisms for Conservation Agriculture Farmers in Cambodia," Agriculture, MDPI, vol. 14(6), pages 1-26, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arceo-Gómez, Eva O. & Campos-Vázquez, Raymundo M., 2014. "Evolución de la brecha salarial de género en México," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(323), pages .619-653, julio-sep.
    2. Donghyun Kim & Up Lim, 2017. "Wage Differentials between Heat-Exposure Risk and No Heat-Exposure Risk Groups," IJERPH, MDPI, vol. 14(7), pages 1-17, June.
    3. Melo, Patricia C. & Graham, Daniel J. & Noland, Robert B., 2009. "A meta-analysis of estimates of urban agglomeration economies," Regional Science and Urban Economics, Elsevier, vol. 39(3), pages 332-342, May.
    4. Aleksandra Anić & Gorana Krstić, 2019. "What Lies Behind The Gender Wage Gap In Serbia?," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 64(223), pages 137-170, October –.
    5. Hela Jeddi & Dhafer Malouche, 2015. "Wage gap between men and women in Tunisia," Papers 1511.02229, arXiv.org.
    6. Zhang, Li & Sharpe, Rhonda Vonshay & Li, Shi & Darity, William A., 2016. "Wage differentials between urban and rural-urban migrant workers in China," China Economic Review, Elsevier, vol. 41(C), pages 222-233.
    7. Domenico Depalo & Raffaela Giordano & Evangelia Papapetrou, 2015. "Public–private wage differentials in euro-area countries: evidence from quantile decomposition analysis," Empirical Economics, Springer, vol. 49(3), pages 985-1015, November.
    8. Aleksandra Majchrowska & Paweł Strawiński & Karolina Konopczak & Agnieszka Skierska, 2014. "Why are women paid less than men? An investigation into gender wage gap in Poland," Working Papers 2014-31, Faculty of Economic Sciences, University of Warsaw.
    9. Niels-Hugo Blunch, 2018. "Just like a woman? New comparative evidence on the gender income gap across Eastern Europe and Central Asia," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 8(1), pages 1-41, December.
    10. Karen Mumford & Cristina Sechel, 2017. "Pay, Rank and Job Satisfaction amongst Academic Economists in the UK," Discussion Papers 17/17, Department of Economics, University of York.
    11. Karen Mumford & Cristina Sechel, 2020. "Pay and Job Rank among Academic Economists in the UK: Is Gender Relevant?," British Journal of Industrial Relations, London School of Economics, vol. 58(1), pages 82-113, March.
    12. Marcela Parada-Contzen, 2020. "Crowding-out in savings decisions, portfolio default adoption and home ownership: evidence from the Chilean retirement system," Review of Economics of the Household, Springer, vol. 18(2), pages 543-569, June.
    13. Saule Kemelbayeva, 2020. "Returns to schooling in Kazakhstan: an update using a pseudo-panel approach," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 10(3), pages 437-487, September.
    14. Mustafizur Rahman & Marzuka Md. Al-Hasan, 2019. "Women in Bangladesh Labour Market: Determinants of Participation, Gender Wage Gap and Returns to Schooling," CPD Working Paper 124, Centre for Policy Dialogue (CPD).
    15. Somasree Poddar & Ishita Mukhopadhyay, 2019. "Gender Wage Gap: Some Recent Evidences from India," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(1), pages 121-151, March.
    16. Danielle Lamb, 2013. "Earnings Inequality Among Aboriginal Groups in Canada," Journal of Labor Research, Springer, vol. 34(2), pages 224-240, June.
    17. Iversen Jens & Malchow-Møller Nikolaj & Sørensen Anders, 2011. "The Returns to Education in Entrepreneurship: Heterogeneity and Non-Linearities," Entrepreneurship Research Journal, De Gruyter, vol. 1(3), pages 1-38, July.
    18. Nikhil Agarwal, 2015. "An Empirical Model of the Medical Match," American Economic Review, American Economic Association, vol. 105(7), pages 1939-1978, July.
    19. Gashi Ardiana & Adnett Nick, 2020. "Are Women Really Paid More than Men in Kosovo? Unpicking the Evidence," South East European Journal of Economics and Business, Sciendo, vol. 15(2), pages 83-95, December.
    20. Neil Foster-McGregor & Sebastian Leitner & Sandra M. Leitner & Johannes Pöschl & Robert Stehrer, 2014. "Earnings Distributions and Dimensions of Inequality," wiiw Research Reports 399, The Vienna Institute for International Economic Studies, wiiw.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

    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:pra:mprapa:97052. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.