Impact of Microfinance on Schooling: Evidence from Poor Rural Households in Bolivia

Maldonado, Jorge Higinio; González-Vega, Claudio

doi:10.1016/j.worlddev.2008.04.004

Cited by 94 publications

(79 citation statements)

References 28 publications

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“…It is further corroborated by Khandker and Faruqee (2003), Khandker (2005), Copestake et al (2005), Dadzie and Ghartey (2010) who concluded in their study that credit helps raise incomes and consumption of poor households in particular and welfare in general. Indeed, similar findings have been reported in related empirical studies in Bangladesh (Khandker, 2005;Pitt and Khandker, 1998;Mahjabeen, 2008;Ahmed et al, 2001;Amin and Sheikh, 2011), China (Li et al, 2011), Indonesia (Okten and Osil, 2004), Bolivia (Maldonado and Gonzalez-Vega, 2008), Vietnam (Duong and Izumida, 2002), Guatemala (Wydick, 1999), India (Imai et al, 2010), Ghana (Alhassan and Sagre, 2006), Ethiopia (Sebhatu, 2012), Malawi (Swaminathan et al, 2010;Shimamura and Lastarria-Cornhiel, 2010;Hazarika and Alwang, 2003), and Tunisia (Foltz, 2004). These studies generally concluded that formal credit helps improve the welfare of borrowers as it empowers them in their decision-making processes, asset accumulation, political participation and legal awareness among others.…”

Section: Resultssupporting

confidence: 86%

Estimating the effects of formal and informal credit on farm household welfare: A hierarchical competitive welfare model approach

Akudugu¹

2014

J. Dev. Agric. Econ.

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This paper uses the hierarchical competitive welfare model approach to estimate the effects of credit from formal and informal sources on welfare development of farm households in Ghana. Data used for the econometric analyses came from the Ghana Living Standards Survey Round 5 dataset. The results showed that when a farm household is given GHC100 as formal credit, its welfare expenditure would increase by about GHC6. On the other hand, GHC100 given to a farm household as informal credit reduces its welfare expenses by about GHC10. There are two possible explanations for the negativity of informal credit on household welfare expenses. The first is that most informal credit is delivered in material forms instead of cash, which therefore reduces how much borrowing households expend on those materials. The second possible explanation is that informal credit borrowers get trapped in the vicious cycle of poverty such that it reduces their capacity to expend towards the attainment of their welfare outcomes such as food security, healthcare, education and general well-being. A paradigm shift towards the integration of formal and informal financial markets of Ghana is recommended.

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Section: Resultssupporting

confidence: 86%

Estimating the effects of formal and informal credit on farm household welfare: A hierarchical competitive welfare model approach

Akudugu¹

2014

J. Dev. Agric. Econ.

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“…4;2014 family members attending school whereas the household-income are significant negative effects on the educational debt. In common with much previous research, such as Glick and Sahn (2000), Maldonado and González-Vega (2008), Kazianga (2012), Sabates, Hossain, and Lewin (2013), Stair, Rephan, and Heberling (2006), Baum and Malley (2003), Laura and Seaks (2013) as well as Eckel et al (2007) (household) income has impacted dependent variables which include educational opportunities of dependents, educational investment along with the educational debt whereas for the "affluent" cluster, factors which have important effects on educational debt are household debt and followed by household size and household head's age.…”

Section: Summaries and Conclusionsupporting

confidence: 70%

“…Moreover, it was found that the number of young siblings in a household considerably reduced the probability of girl's education in households. Maldonado and González-Vega (2008) estimated the effect of explanatory variables on the schooling gap (expected schooling-actual schooling) in rural households in Bolivia. Households in this study are those which had joined the microfinance program of microfinance institutions (MFIs).…”

Section: The Effect Of Household Characteristics On Family Members' Ementioning

confidence: 99%

What Can Tobit-Piecewise Regression Tell Us about the Determinants of Household Educational Debt?

Thipbharos¹

2014

IES

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Educational debt as part of household debt remains a problem for Thailand. The significant factors of household characteristics with regard to educational debt are shown by constructing a Tobit-piecewise regression for three different clusters, namely poor, middle and affluent households in Thailand. It was found that household debt is likely to be significant for educational debt in all clusters, with much greater effect in poor households. Household income directly influences the educational debt in households with only moderate economic status. Nevertheless, the result of this study indicates that an effect of the administrative area on educational debt was not found.

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“…My paper is one of the few that examines this issue. Maldonado and Gonzalez-Vega (2008), using data from household surveys in Bolivia, look at the impact of microfinance on the demand for education. Tarozzi et al (2015) study the relationship between micro-credit and primary school attendance in Ethiopia; Augsburg et al (2015) perform a similar study in Bosnia and Herzegovina.…”

Section: Introductionmentioning

confidence: 99%

Microfinance and the Decision to Invest in Children’s Education

Viswanath

2018

IJFS

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Although one of the primary objectives of microfinance has been the reduction of poverty through the provision of credit for income-generating purposes, evidence of its impact on poverty has been mixed. Even if there is no direct impact of microfinance, there may be an indirect positive impact through the effect of microcredit availability on families’ decisions to invest in their children’s education. In this paper, I describe a study undertaken to gauge the impact of microcredit availability on education expenditures for children of clients of a South Indian microfinance institution. I first look at some determinants of the demand for education and then go on to consider what we know about how microcredit affects this demand. I find that microcredit has an impact on the demand for education as mediated by wealth effects and status effects, i.e., microloans increase spending on education the greater the wealth and the greater the social status of the family. Focus group interviews suggest that the impact of microcredit on the demand for education comes mainly from the greater access to financial resources and, to a lesser degree, from an accompanying appreciation of the value of education.

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Impact of Microfinance on Schooling: Evidence from Poor Rural Households in Bolivia

Cited by 94 publications

References 28 publications

Estimating the effects of formal and informal credit on farm household welfare: A hierarchical competitive welfare model approach

Estimating the effects of formal and informal credit on farm household welfare: A hierarchical competitive welfare model approach

What Can Tobit-Piecewise Regression Tell Us about the Determinants of Household Educational Debt?

Microfinance and the Decision to Invest in Children’s Education

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