This paper analyzes multiple measures of married women's empowerment in the domestic sphere in 56 communities spanning five Asian countries (India, Malaysia, Pakistan, the Philippines and Thailand). At issue is whether community or individual characteristics are better predictors of women's empowerment, and whether different dimensions of empowerment are similarly related to community or individual traits. The analysis shows that, consistent with the theoretical approach employed here, which treats gender relations as heavily influenced by community norms and values, community is a far stronger predictor of women's empowerment than are individual traits. The relationship of both community and individual traits to different measures of empowerment vary, suggesting that "empowerment" is inherently a multi- dimensional phenomenon, with women relatively empowered in some spheres but not in others. The primary policy implication is the importance of changing community norms and values about gender relations for empowering women. The results also suggest that policies to raise women's age at marriage, enhance their educations and open greater employment opportunities will also help to empower them, at least in some respects.
Intervention description: Land titling.
Methodology: OLS regressions of wives' domestic economic power with 1993-94, authors' own survey.
Sample: 7,287 women from five countries.
Findings: Land ownership has positive impact on women's authority in making household-expenditure decisions in India and Thailand.
How Access to Credit Affects Self-Employment: Differences by Gender during India's Rural Banking ReformMenon and Rodgers (2011)
Household survey data for 1983-2000 from India's National Sample Survey Organization are used to examine the impact of credit on self-employment among men and women in rural labor households. Results indicate that credit access encourages women's self-employment as own- account workers and employers, while it discourages men's self-employment as unpaid family workers. Ownership of land, a key form of collateral, also serves as a strong predictor of self- employment. Among the lower castes in India, self-employment is less likely for scheduled castes prone to wage activity, but more likely for scheduled tribes prone to entrepreneurial work.
Intervention description: Land titling and credit.
Methodology: Instrumental variable probit models for likelihood of being self-employed with 1983-2000 NSSO.
Sample: 408,385 individuals (43% women).
Findings: Credit access encourages women's self-employment as own-account workers and employers; land ownership also serves as a strong predictor of self-employment.
Swaminathan et al. (2012)
Recent research has shown that a substantial gap exists in asset ownership between men and women. In this paper, we examine the impact of rural women's property ownership on their mobility and autonomy in decisionmaking. The results are based on data collected by the authors in the state of Karnataka, India (The Karnataka Household Asset Survey 2010-11), which has individual-level asset ownership and valuation information. The research was undertaken in order to measure the extent of gender disparities in asset ownership and wealth in the state, and to build on the empirical literature that discusses the importance of asset ownership for women. Using logistic regression models, we find that owning a house or a plot of agricultural land enhances women's ability to travel to the market, health center, and other places outside the community, and to make decisions about their employment, health, and use of money independently. These processes, while important for women's own welfare, are also instrumental in improving the welfare outcomes of the entire household, particularly those of children. The impact of women's asset ownership and enhanced decisionmaking abilities on children's nutritional outcomes cannot be overstated. The findings of this paper thus bring to focus the need to intensify policy interventions aimed at increasing women's asset base and bridging the gender asset gap.
Intervention description: Land titling.
Methodology: Logit models with 2010-11 Karnataka Household Asset Survey.
Sample: 4,677 individuals (53% women).
Findings: Home ownership and land ownership both have positive effects on women's mobility outside the home, and on their ability to make decisions about their own work, health and expenditures.
Banerjee et al (2013)
Microcredit has spread extremely rapidly since its beginnings in the late 1970s, but whether and how much it helps the poor is the subject of intense debate. This paper reports on the first randomized evaluation of the impact of introducing microcredit in a new market. Half of 104 slums in Hyderabad, India were randomly selected for opening of an MFI branch while the remainder were not. We show that the intervention increased total MFI borrowing, and study the effects on the creation and the profitability of small businesses, investment, and consumption. Fifteen to 18 months after lending began in treated areas, there was no effect of access to microcredit on average monthly expenditure per capita, but expenditure on durable goods increased in treated areas and the number of new businesses increased by one third. The effects of microcredit access are heterogeneous: households with an existing business at the time of the program invest more in durable goods, while their nondurable consumption does not change. Households with high propensity to become new business owners increase their durable goods spending and see a decrease in nondurable consumption, consistent with the need to pay a fixed cost to enter entrepreneurship. Households with low propensity to become business owners increase their nondurable spending. We find no impact on measures of health, education, or women's decision-making.
Intervention settings: Urban (Hyderabad).
Intervention description: Group liability credit in the amount of $200 (at market exchange rates, or $1,00 in PPP-adjusted rates) offered to groups of 6 to 10 women. Loan amounts may increase up to double on successful repayment. Also offered mortgage and insurance products, and savings accounts.
Sample: 2,800 adult, very poor women from slums.
Findings: 32% higher new business creation. Positive impact on business formation among female-headed HH and on business investment among HHs with existing businesses. Female-headed HH in intervention areas more likely to start new business. No significant impact on average total per capita expenditure; or women's business revenues, profits or number of employees. No impact on number of employees in women's businesses. No significant impact on women's business revenues or profits. No impact on women's decision-making on HH spending.
Chen and Snodgrass (2001)
This study measures the impact of microfinance services of Self Employed Women's Association (SEWA) on low-income women of Ahmedabad, in India. The explicit hypothesis was that specific impact may be found at three different levels - household, enterprise and the individual level. The data used for cross section and longitudinal statistical tests was from surveys conducted in 1998 and 2000 for 798 respondents. The researchers also carried out complementary analyses. The clients of SEWA were poor and belonged to backward sections of society. They faced severe discrimination and worked as micro entrepreneurs, subcontractors or casual laborers.
Intervention settings: Urban
Intervention description: Group liability credit (various types of training), savings and microinsurance.
Methodology: Quasi-experimental, statistical comparison of members and non-members, and panel data.
Sample: 798 very poor women working in informal sector (41% microentrepreneurs; 36% subcontractors; 22% casual laborers; only 1% salaried.) Most make under $1/day and belong to Backward of Scheduled castes or tribes (and all suffer severe gender/social class discrimination).
Findings: Informal sector earnings of clients' households increased. Postive impact on total business earnings of HH. Small impact on number of employees of HH microenterprises. No impact on women's businesses.
Cole et al (2012)
Financial engineering offers the potential to significantly reduce the consumption fluctuations faced by individuals, households, and firms. Yet much of this potential remains unfulfilled. This paper studies the adoption of an innovative rainfall insurance product designed to compensate low-income Indian farmers in the event of insufficient rainfall during the primary monsoon season. We first document relatively low adoption of this new risk management product: Only 5-10 percent of households purchase the insurance, even though they overwhelmingly cite rainfall variability as their most significant source of risk. We then conduct a series of randomized field experiments to test theories of why product adoption is so low. Insurance purchase is sensitive to price, with an estimated extensive price elasticity of demand ranging between -.66 and -0.88. Credit constraints, identified through the provision of random liquidity shocks, are a key barrier to participation, a result also consistent with household self-reports. Several experiments find that trust plays an important role in the decision to purchase insurance. We find mixed evidence that subtle psychological manipulations affect purchases and no evidence that modest attempts at financial education change households' decisions to participate. Based on our experimental results, we suggest preliminary lessons for improving the design of household risk management contracts.
Intervention settings: Rural: Andhra Pradesh and Gujarat.
Intervention description: Rainfall insurance offered to farmers at different discounted prices.
Sample: AP: 2,547 land-owning households; Gujarat: 1,500 households from 100 villages, in which the participating NGO marketing the rainfall insurance operated and located within 30 kms of a rainfall station. Gender included in the model but results not reported.
Findings: Take up strongly related to price, with estimated price elasticities ranging from -0.66 to -0.88. However, take-up was low (less than 50%) even when the price was heavily discounted. Demand appears to be constrained by liquidity.
de Mel et al (2008)
We use randomized grants to generate shocks to capital stock for a set of Sri Lankan microenterprises. We find the average real return to capital in these enterprises is 4.6-5.3 percent per month (55-63 percent per year), substantially higher than market interest rates. We then examine the heterogeneity of treatment effects. Returns are found to vary with entrepreneurial ability and with household wealth, but not to vary with measures of risk aversion or uncertainty. Treatment impacts are also significantly larger for enterprises owned by males; indeed, we find no positive return in enterprises owned by females.
Intervention settings: Urban.
Intervention description: Capital grants in cash or in kind ($100 or $200).
Sample: 385 microenterprises, 49% female-owned.
Findings: No significant impact on earnings.
de Mel et al (2009)
We report on a field experiment providing random grants to microenterprise owners. The grants generated large profit increases for male owners, but not for female owners. We show that the gender gap does not simply mask differences in ability, risk aversion, entrepreneurial attitudes, or differences in reporting behavior, but there is some evidence that the gender gap is larger in female-dominated industries. The data are not consistent with a unitary household model, and indeed, imply an inefficiency of resource allocation within households. We show evidence that this inefficiency is reduced in more cooperative households.
Intervention settings: Peri-urban.
Intervention description: Grants of $100 and $200 in cash or in-kind.
Sample: 405 low-capital microentrepreneurs (50% women).
Findings: Positive returns to capital for men's businesses; mixed impact on women's businesses. Women invest very little of smaller grants in business, but as much, if not more than men of the larger grant. Women do not experience permanent increases in business income from grants, while men do.
Feigenberg et al. (2011)
Microfinance clients were randomly assigned to repayment groups that met ei- ther weekly or monthly during their first loan cycle, and then graduated to identical meeting frequency for their second loan. Long-run survey data and a follow-up pub- lic goods experiment reveal that clients initially assigned to weekly groups interact more often and exhibit a higher willingness to pool risk with group members from their first loan cycle nearly two years after the experiment. They were also three times less likely to default on their second loan. Evidence from an additional treat- ment arm show that, holding meeting frequency fixed, the pattern is insensitive to repayment frequency during the first loan cycle. Taken together, these findings con- stitute the first experimental evidence on the economic returns to social interaction, and provide an alternative explanation for the success of the group lending model in reducing default risk.
Intervention settings: Urban and peri-urban.
Intervention description: Individual liability loans. Tested the impact of meeting frequency and social interaction on repayment rates of individual-liability loans.
Sample: First time microfinance bank clients living in peri-urban slums in the city of Kolkata. Over 70% owned a business and median client's HH income just below a dollar a day. 100% women.
Findings: In the absence of group liability and enforcement, more frequent group meetings led to greater social interaction and reduced default rates.
Field et al (2010)
Financiers across the world structure debt contracts to limit the risk of entrepreneurial lending. However, certain debt structures that reduce risk may inhibit enterprise growth, especially among the poor. We use a field experiment to estimate the short- and long-run impacts of varying the term structure of the classic microfinance loan product. While the classic microfinance loan contract requires clients to make small and frequent repayment installments beginning immediately after loan disbursement, clients in our treatment group instead received a two-month grace period before repay- ment began. The shift to a grace period contract increased clients' business investments in the short run and profits and income in the long run, but also their rate of default, indicating a shift towards investments with higher average but also more variable re- turns. In this manner, the absence of a grace period reduces risk but also the potential impact of microfinance on microenterprise growth and household poverty.
Intervention settings: Unknown
Intervention description: Group liability credit. Tested the benefit of using a grace period for loans instead of starting repayment immediately.
Sample: Poor microentrepreneurs and wage workers (75% have home-based business).
Findings: Positive impact of grace period on businesses of some women. Women with grace period invested 6% more of loans in businesses than those with no grace period. After two years, women with grace period increased average profits by 30%. 19% of women with a grace period group defaulted on loans, (compared to 2% default rate among women with standard repayment).