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Male/Female Difference in effect of access to credit

Posted: Fri May 31, 2019 7:42 am
by Hazele
The indication by your findings that there is a different effect, in magnitude, of access to formal credit between women and men is a critical finding with potentially serious policy implications. However, to make sure the difference is purely due to one being a woman or man, you might need to look for a way to control for possibility that the difference could be a result of men's higher prior access to family and informal credit which makes access to formal credit not to have as much an effect as with women who have lesser access to informal and family credit.

This same thinking would apply in terms of age where older youths have higher effect, which could be a result of what you observed in your descriptive statistics that younger youths depend more on family credit.

Re: Male/Female Difference in effect of access to credit

Posted: Fri May 31, 2019 9:32 am
by DikshyaSingh
I would also like to add on this. Since most of the formal microcredits offered by microfinance banks and institutions are usually targetted towards women and women groups. So women in the sample having access to formal credit may be the result of such specific targetting not a random phenomenon. As the commentator above mentioned, if this is the case, then this has greater policy implication. So please make sure that this is accounted for in your model.