Demand for Microcredit by Indonesian women
The poverty alleviating benefits of gender-targeted microcredit programs has successfully been demonstrated in South Asia. In this paper, we examine the demand for credit by Indonesian women, in the absence of such a targeted microcredit program. We argue that when credit markets are imperfect and there are informational asymmetries, it is important to take into account the possibility that individuals may have no knowledge of or be unwilling to borrow due to constraints. Our results show that selection bias cannot be neglected, and ignoring double-selection may lead to an underestimation of loan demand by nearly one hundred percent. We find that given knowledge of credit facilities, women in female-headed households, and better networked women are more likely to be.
|Date of creation:||May 2006|
|Date of revision:|
|Contact details of provider:|| Postal: Sydney, NSW 2006|
Phone: 61 +2 9351 5055
Fax: 61 +2 9351 4341
Web page: http://sydney.edu.au/arts/economics
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Berger, Marguerite, 1989. "Giving women credit: The strengths and limitations of credit as a tool for alleviating poverty," World Development, Elsevier, vol. 17(7), pages 1017-1032, July.
- Badu, Yaw A. & Daniels, Kenneth N. & Salandro, Daniel P., 1999. "An empirical analysis of differences in Black and White asset and liability combinations," Financial Services Review, Elsevier, vol. 8(3), pages 129-147.
- Hashemi, Syed M. & Schuler, Sidney Ruth & Riley, Ann P., 1996. "Rural credit programs and women's empowerment in Bangladesh," World Development, Elsevier, vol. 24(4), pages 635-653, April.
- Khawari, Aliya, 2004. "Microfinance: Does it hold its promises? A survey of recent literature," HWWA Discussion Papers 276, Hamburg Institute of International Economics (HWWA).
- Mark M. Pitt & Shahidur R. Khandker, 1998. "The Impact of Group-Based Credit Programs on Poor Households in Bangladesh: Does the Gender of Participants Matter?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 958-996, October.
- Duncan Thomas & John Strauss & Maria-Helena Henriques, 1991. "How Does Mother's Education Affect Child Height?," Journal of Human Resources, University of Wisconsin Press, vol. 26(2), pages 183-211.
- Mark M. Pitt & Shahidur R. Khandker & Omar Haider Chowdhury & Daniel L. Millimet, 2003. "Credit Programs for the Poor And the Health Status of Children in Rural Bangladesh," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(1), pages 87-118, February.
- T. Paul Schultz, 1990.
"Testing the Neoclassical Model of Family Labor Supply and Fertility,"
Journal of Human Resources,
University of Wisconsin Press, vol. 25(4), pages 599-634.
- Schultz, T.P., 1990. "Testing The Neoclassical Model Of Family Labor Supply And Fertility," Papers 601, Yale - Economic Growth Center.
- Assaad, Ragui & Arntz, Melanie, 2005. "Constrained Geographical Mobility and Gendered Labor Market Outcomes Under Structural Adjustment: Evidence from Egypt," World Development, Elsevier, vol. 33(3), pages 431-454, March.
- Diah Widarti, 1998. "Determinants of Labour Force Participation by Married Women: The Case of Jakarta," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 34(2), pages 93-120.
- Sarah Brown & Karl Taylor & Gaia Garino & Stephen Wheatley Price, 2003.
"Debt and financial expectations: an individual and household level analysis,"
Discussion Papers in Economics
03/5, Department of Economics, University of Leicester, revised Feb 2004.
- Sarah Brown & Gaia Garino & Karl Taylor & Stephen Wheatley Price, 2005. "Debt and Financial Expectations: An Individual- and Household-Level Analysis," Economic Inquiry, Western Economic Association International, vol. 43(1), pages 100-120, January.
- Kabeer, Naila, 2001. "Conflicts Over Credit: Re-Evaluating the Empowerment Potential of Loans to Women in Rural Bangladesh," World Development, Elsevier, vol. 29(1), pages 63-84, January.
- Mark M. Pitt & Shahidur R. Khandker & Omar Haider Chowdhury & Daniel L. Millimet, 1998. "Credit Programs for the Poor and the Nutritional Status of Children in Rural Bangladesh," Working Papers 98-4, Brown University, Department of Economics, revised 16 Jan 1998.
- Chiappori, Pierre-Andre, 1992.
"Collective Labor Supply and Welfare,"
Journal of Political Economy,
University of Chicago Press, vol. 100(3), pages 437-67, June.
- M. M. Pitt & S. R. Khandker, 2002. "Credit Programmes for the Poor and Seasonality in Rural Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 39(2), pages 1-24.
- Thomas, D., 1989.
"Intra-Household Resource Allocation: An Inferential Approach,"
586, Yale - Economic Growth Center.
- Duncan Thomas, 1990. "Intra-Household Resource Allocation: An Inferential Approach," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 635-664.
- Cavalluzzo, Ken S & Cavalluzzo, Linda C, 1998. "Market Structure and Discrimination: The Case of Small Businesses," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 30(4), pages 771-92, November.
- Lanzona, Leonardo A., 1998. "Migration, self-selection and earnings in Philippine rural communities," Journal of Development Economics, Elsevier, vol. 56(1), pages 27-50, June.
- Okten, Cagla & Osili, Una Okonkwo, 2004. "Social Networks and Credit Access in Indonesia," World Development, Elsevier, vol. 32(7), pages 1225-1246, July.
When requesting a correction, please mention this item's handle: RePEc:syd:wpaper:2123/7631. 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: (Vanessa Holcombe)
If references are entirely missing, you can add them using this form.