Two crucial problems when research agencies or donors need to assess empirically the microfinance/children education nexus on already operating organizations are lack of availability of panel data and selection bias. We propose an original approach which tackles these problems by combining retrospective panel data, fixed effects and comparison between pre- and post-treatment trends. The relative advantage of our approach vis-à-vis standard cross-sectional estimates (and even panels with just two time periods) is that it allows to analyse the progressive effects of microfinance on borrowers. With this respect, our article gives an answer to the widespread demand of impact methodologies required by regulators or by funding agencies which need to evaluate the current and past performance of existing institutions. We apply our approach to a sample of microfinance borrowers coming from two districts of Buenos Aires with different average income levels. By controlling for survivorship bias and heterogeneity in time invariant and time varying characteristics of respondents we find that years of credit history have a positive and significant effect on child schooling conditional to the borrower’s standard of living and distance from school.

The effects of microfinance on child schooling: a retrospective approach

CONZO, Pierluigi
2014

Abstract

Two crucial problems when research agencies or donors need to assess empirically the microfinance/children education nexus on already operating organizations are lack of availability of panel data and selection bias. We propose an original approach which tackles these problems by combining retrospective panel data, fixed effects and comparison between pre- and post-treatment trends. The relative advantage of our approach vis-à-vis standard cross-sectional estimates (and even panels with just two time periods) is that it allows to analyse the progressive effects of microfinance on borrowers. With this respect, our article gives an answer to the widespread demand of impact methodologies required by regulators or by funding agencies which need to evaluate the current and past performance of existing institutions. We apply our approach to a sample of microfinance borrowers coming from two districts of Buenos Aires with different average income levels. By controlling for survivorship bias and heterogeneity in time invariant and time varying characteristics of respondents we find that years of credit history have a positive and significant effect on child schooling conditional to the borrower’s standard of living and distance from school.
24
2
89
106
http://www.tandfonline.com/doi/full/10.1080/09603107.2013.856998
child schooling; microfinance; retrospective data; impact evaluation.
L. Becchetti; P. Conzo
File in questo prodotto:
File Dimensione Formato  
09603107%2E2013%2E856998.pdf

Accesso riservato

Descrizione: pdf editoriale
Tipo di file: PDF EDITORIALE
Dimensione 376.79 kB
Formato Adobe PDF
376.79 kB Adobe PDF   Visualizza/Apri   Richiedi una copia
The%20controversial%20effects%20of%20microfinance%20on%20child%20schooling-2.pdf

Accesso aperto

Tipo di file: PREPRINT (PRIMA BOZZA)
Dimensione 1.27 MB
Formato Adobe PDF
1.27 MB Adobe PDF Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/2318/120825
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 3
  • ???jsp.display-item.citation.isi??? ND
social impact