Government programs supporting self help groups (SHGs) generally target women on the assumption that doing so enhances women's decision-making. The empirical evidence, however, is mixed. We advance and test one… Click to show full abstract
Government programs supporting self help groups (SHGs) generally target women on the assumption that doing so enhances women's decision-making. The empirical evidence, however, is mixed. We advance and test one explanation: the loan amounts offered by most SHGs may be too small to impact women. Our analysis is based on SHGs developed under India's National Rural Livelihoods Mission, a program that supported both small loans from internal savings and larger loans through Community Investment Funds (CIFs). Exploiting variation in their phasing and amount, we document a large effect of CIFs on women's decision-making and on intra-household allocations.
               
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