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on Microfinance |
| By: | Landmann, Andreas (University of Mannheim); Frölich, Markus (University of Mannheim) |
| Abstract: | Child labor is a common consequence of economic shocks in developing countries. We show how reducing vulnerability can affect child labor and schooling. We exploit the extension of a health and accident insurance scheme by a Pakistani microfinance institution (MFI) that was set up as a randomized controlled trial and accompanied by household panel surveys. Together with increased coverage the MFI offered assistance with claim procedures in treatment branches. Using Difference-in-difference techniques we find lower incidence of child labor and lower child labor earnings caused by the innovation. Separating the two parts of the innovation package, the effects of claim assistance are mostly insignificant, while increased insurance coverage has large effects on child labor outcomes and days missed at school. Consistent with a theoretical model we develop in this paper, the effect is largely due to an ex-ante feeling of protection as opposed to a shock-mitigation effect. |
| Keywords: | child labor, health insurance, Pakistan |
| JEL: | J20 J82 O12 |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7337&r=mfd |
| By: | Brian Greaney; Joseph P. Kaboski; Eva Van Leemput |
| Abstract: | This paper examines a cost-reducing innovation to the delivery of "Self-Help Group" microfinance services. These groups typically rely on outside agents to found and administer the groups although funds are raised by the group members. The innovation is to have the agents earn their payment by charging membership fees rather than following the status quo in which the agents are paid by an outside organization and instead offer free services to clients. The theory we develop shows that such membership fees could actually improve performance without sacrificing membership, simply by mitigating an adverse selection problem. Empirically, we evaluate this innovation in East Africa using a randomized control trial. We find that privatized entrepreneurs providing the self-help group services indeed outperform their NGO-compensated counterparts along several dimensions. Over time, they cost the NGO less and lead more profitable groups; also, households with access to privately-delivered groups borrow and save more, invest more in businesses, and may have higher consumption. Consistent with the theory, these privatized groups attract wealthier, more business-oriented members, although they attract no fewer members. |
| JEL: | O1 O12 O16 |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18970&r=mfd |
| By: | Renaud Bourlès; Anastasia Cozarenco |
| Abstract: | We analyze in this paper how various forms of State intervention can impact the microcredit market in developed countries. Using a simple model where entrepreneurs borrow without collateral, we study the effect of different policies on microfinance institutions' lending behavior. We first introduce state intervention through the loan guarantee and show that, not surprisingly, it increases the number of entrepreneurs receiving a loan. However, after modeling business development services provided by the microfinance institution, we show that the government loan guarantee can have a counterproductive effect by reducing the number of entrepreneurs benefiting from such services. We therefore analyze an alternative policy: the subsidization of business development services by the State. We then provide a condition under which - for fixed government expenditures - such subsidies are more effective (in terms of outreach) than loan guarantees. |
| Keywords: | microcredit; loan guarantee; business development services; microfinance institution |
| JEL: | G14 G21 G38 D45 D82 |
| Date: | 2013–04–25 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/143450&r=mfd |
| By: | Glòria Estapé-Dubreuil (CEREN - Centre de Recherche sur l'Entreprise - Start entering a institution, university, grande ecole); Arvind Ashta (CEREN - Centre de Recherche sur l'Entreprise - Start entering a institution, university, grande ecole, Chaire Banque Populaire en Microfinance du Groupe ESC Dijon Bourgogne - Commencez à saisir le nom d'un établissement); Jean-Pierre Hédou (CEREN - Centre de Recherche sur l'Entreprise - Start entering a institution, university, grande ecole) |
| Abstract: | Microequity may be the key to overcoming stress of micro entrepreneurs who are over-exposed to micro-credit. French microangels are willing to invest small amounts to help people start their own business and move out of poverty. The French microangels invest through syndication in microenterprise projects. Each angel provides only a few hundred Euros, but together they are able to provide as much as three thousand Euros to firms. They look for social and environmental returns rather than financial returns. These include geographical proximity and solidarity. |
| Keywords: | Social entrepreneurship; micro-angels; micro-enterprise; micro equity; business angels; venture capital; social investors |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00812966&r=mfd |
| By: | Guillaume PASTUREAU |
| Abstract: | Le Mont-de-Piété est à l’origine du microcrédit social. Il s’oppose au dogme économique de l’Eglise, qui refuse et combat le commerce de l’argent. En prêtant à intérêt des petites sommes aux populations pauvres, le Mont-de-Piété participe à un double phénomène. Il met au centre des préoccupations le rôle social de l’argent ; il introduit une forme d’aide financière considérée comme plus efficace que la charité. La modernisation économique et sociale des sociétés européennes entre en contradiction avec les structures traditionnelles et pré-capitalistes. Notre objectif est de montrer dans quelle mesure le Mont-de-Piété est véritablement une innovation sociale majeure. |
| Keywords: | microcrédit social, argent secours, économie et religion, innovation sociale. |
| JEL: | A13 B15 N00 N93 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2013-14&r=mfd |