IDEAS home Printed from https://ideas.repec.org/p/sol/wpaper/2013-290703.html
   My bibliography  Save this paper

The gender of debt and the financialisation of development. Insights from rural southern India

Author

Listed:
  • Isabelle Guérin
  • Christophe Nordman
  • Elena Reboul

Abstract

Proponents of financial inclusion regret that women do not have sufficient access to credit, while critics of financialization consider that women are too indebted. But little is actually known about women’s debt/credit in quantitative terms, mostly because of a lack of data. Based on Indian data disaggregated by sex, this descriptive paper analyses the gender of debt, at the prism of caste and poverty. We find that women are already heavily indebted, borrowing much more than men relatively to their income. Furthermore, iemale debt is predominantly - and markedly more than male – used to make both end meets, while productive investment remains in great part a male privilege. Last, it is in the poorest and the lowest caste households that women manage the highest shares of household debt. From a theoretical perspective, these results underline the gender earmarking of debt and credit, ie the fact that male and female debt/credit do not have the same meaning and use. They also confirm the gender dimension of behaviour, women’s behaviour being constrained by their family affiliation, poverty level and caste, which is much less the case for men. Interms of policy implications, these results question microcredit policies: not only microcredit does not tackle the gender of debt, but it may even strengthen it further.

Suggested Citation

  • Isabelle Guérin & Christophe Nordman & Elena Reboul, 2019. "The gender of debt and the financialisation of development. Insights from rural southern India," Working Papers CEB 19-016, ULB -- Universite Libre de Bruxelles.
  • Handle: RePEc:sol:wpaper:2013/290703
    as

    Download full text from publisher

    File URL: https://dipot.ulb.ac.be/dspace/bitstream/2013/290703/3/wp19016.pdf
    File Function: Œuvre complète ou partie de l'œuvre
    Download Restriction: no

    References listed on IDEAS

    as
    1. Ana del Río & Garry Young, 2005. "The impact of unsecured debt on financial distress among British households," Working Papers 0512, Banco de España;Working Papers Homepage.
    2. Lucia F. Dunn & Ida A. Mirzaie, 2016. "Consumer Debt Stress, Changes In Household Debt, And The Great Recession," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 201-214, January.
    3. Alberto Abadie & Susan Athey & Guido Imbens & Jeffrey Wooldridge, 2017. "When Should You Adjust Standard Errors for Clustering?," Papers 1710.02926, arXiv.org, revised Oct 2017.
    4. Schwartz, S. & Finnie, R., 2002. "Student loans in Canada: an analysis of borrowing and repayment," Economics of Education Review, Elsevier, vol. 21(5), pages 497-512, October.
    5. Tara Nair, 2017. "Addressing Financial Exclusion in France and India
      [S’attaquer à l’exclusion financière en France et en Inde]
      ," Working Papers halshs-01451918, HAL.
    6. Isabelle Guérin, 2014. "Juggling with debt, social ties, and values the everyday use of microcredit in rural South India," Post-Print ird-01471734, HAL.
    7. Supriya Garikipati & Isabelle Agier & Isabelle Guérin & Ariane Szafarz, 2017. "The Cost of Empowerment: Multiple Sources of Women’s Debt in Rural India," Journal of Development Studies, Taylor & Francis Journals, vol. 53(5), pages 700-722, May.
    8. Supriya Garikipati & Susan Johnson & Isabelle Guérin & Ariane Szafarz, 2017. "Microfinance and Gender: Issues, Challenges and The Road Ahead," Journal of Development Studies, Taylor & Francis Journals, vol. 53(5), pages 641-648, May.
    9. Garikipati, Supriya, 2008. "The Impact of Lending to Women on Household Vulnerability and Women's Empowerment: Evidence from India," World Development, Elsevier, vol. 36(12), pages 2620-2642, December.
    10. Baum, Christopher F., 2008. "Stata tip 63: Modeling proportions," Stata Journal, StataCorp LP, vol. 8(2), pages 1-5.
    11. repec:taf:ctwqxx:v:34:y:2013:i:4:p:547-568 is not listed on IDEAS
    12. Johnson, Susan, 2004. "Gender Norms in Financial Markets: Evidence from Kenya," World Development, Elsevier, vol. 32(8), pages 1355-1374, August.
    13. Paul D. Allison, 1999. "Comparing Logit and Probit Coefficients Across Groups," Sociological Methods & Research, , vol. 28(2), pages 186-208, November.
    14. Richard Williams, 2009. "Using Heterogeneous Choice Models to Compare Logit and Probit Coefficients Across Groups," Sociological Methods & Research, , vol. 37(4), pages 531-559, May.
    15. Cox, Christopher, 1996. "Nonlinear quasi-likelihood models: applications to continuous proportions," Computational Statistics & Data Analysis, Elsevier, vol. 21(4), pages 449-461, April.
    16. Carolyn Vogler & Jan Pahl, 1993. "Social and Economic Change and the Organisation of Money within Marriage," Work, Employment & Society, British Sociological Association, vol. 7(1), pages 71-95, March.
    17. Cook, Douglas O. & Kieschnick, Robert & McCullough, B.D., 2008. "Regression analysis of proportions in finance with self selection," Journal of Empirical Finance, Elsevier, vol. 15(5), pages 860-867, December.
    18. Dean Karlan & Jonathan Zinman, 2008. "Lying About Borrowing," Journal of the European Economic Association, MIT Press, vol. 6(2-3), pages 510-521, 04-05.
    19. Sarah Bridges & Richard Disney, 2004. "Use of credit and arrears on debt among low-income families in the United Kingdom," Fiscal Studies, Institute for Fiscal Studies, vol. 25(1), pages 1-25, March.
    20. Sarah Brown & Karl Taylor, 2008. "Household debt and financial assets: evidence from Germany, Great Britain and the USA," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 171(3), pages 615-643, June.
    21. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
    22. repec:bla:devchg:v:30:y:1999:i:3:p:435-464 is not listed on IDEAS
    23. Isabelle Guérin & Bert D'Espallier & Govindan Venkatasubramanian, 2013. "Debt in Rural South India: Fragmentation, Social Regulation and Discrimination," Journal of Development Studies, Taylor & Francis Journals, vol. 49(9), pages 1155-1171, September.
    24. Folbre, Nancy, 1986. "Hearts and spades: Paradigms of household economics," World Development, Elsevier, vol. 14(2), pages 245-255, February.
    25. Atte Oksanen & Mikko Aaltonen & Kati Rantala, 2015. "Social Determinants of Debt Problems in a Nordic Welfare State: a Finnish Register-Based Study," Journal of Consumer Policy, Springer, vol. 38(3), pages 229-246, September.
    26. Ghosh, Saibal & Vinod, D., 2017. "What Constrains Financial Inclusion for Women? Evidence from Indian Micro data," World Development, Elsevier, vol. 92(C), pages 60-81.
    27. Isabelle Guérin & Youna Lanos & Sébastien Michiels & Christophe Jalil Nordman & Govindan Venkatasubramanian, 2017. "Insights on Demonetisation from Rural Tamil Nadu: Understanding Social Networks and Social Protection," Post-Print hal-01824464, HAL.
    28. Deininger, Klaus & Liu, Yanyan, 2013. "Economic and Social Impacts of an Innovative Self-Help Group Model in India," World Development, Elsevier, vol. 43(C), pages 149-163.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Gender; Debt; Poverty; Caste; India;

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

    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:sol:wpaper:2013/290703. 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: (Benoit Pauwels). General contact details of provider: http://edirc.repec.org/data/cebulbe.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.

    If CitEc recognized a 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.

    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.