The Impact of Group-Based Credit Programs on Poor Households in Bangladesh: Does the Gender of Participants Matter

Posted: 19 Oct 1998

See all articles by Mark M. Pitt

Mark M. Pitt

Brown University

Shahidur R. Khandker

World Bank - Development Research Group (DECRG)

Abstract

This paper estimates the impact of participation, by gender, in the Grameen Bank and two other group-based micro credit programs in Bangladesh on labor supply, schooling, household expenditure, and assets. The empirical method uses a quasi-experimental survey design to correct for the bias from unobserved individual and village-level heterogeneity. We find that program credit has a larger effect on the behavior of poor households in Bangladesh when women are the program participants. For example, annual household consumption expenditure increases 18 taka for every 100 additional taka borrowed by women from these credit programs, compared with 11 taka for men.

JEL Classification: O12, O16, O53

Suggested Citation

Pitt, Mark M. and Khandker, Shahidur R., The Impact of Group-Based Credit Programs on Poor Households in Bangladesh: Does the Gender of Participants Matter. Journal of Political Economy, 1998. Available at SSRN: https://ssrn.com/abstract=128918

Mark M. Pitt (Contact Author)

Brown University ( email )

Box B
Providence, RI 02912
United States
401-863-2970 (Phone)
401-863-1970 (Fax)

Shahidur R. Khandker

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

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