| By: |
Frisancho, Veronica;
Valdivia, Martin |
| Abstract: |
This paper evaluates the impact of the introduction of savings groups on
poverty, vulnerability, and financial inclusion outcomes in rural Peru. Using
a cluster randomized control trial and relying on both survey and
administrative records, we investigate the impact of savings groups over a two
year period. We find that savings groups channel expensive investments such as
housing improvements and reduce households’ vulnerability to idiosyncratic
shocks, particularly among households in poorer districts. The treatment also
induces changes in households’ labor allocation choices: access to savings
groups increases female labor market participation and, in poorer areas, it
fosters greater specialization in agricultural activities. Access to savings
groups also leads to a four-percentage point increase in access to credit
among women, mainly driven by access to the group’s loans. However, the
introduction of savings groups has no impact on the likelihood to use formal
financial services. On the contrary, it discourages access to loans from
formal financial institutions and microfinance lenders among the unbanked. |
| Keywords: |
Banca de desarrollo, Economía, Familia, Finanzas, Investigación socioeconómica, Pobreza, Sector financiero, |
| Date: |
2021 |
| URL: |
http://d.repec.org/n?u=RePEc:dbl:dblwop:1678&r=all |