Financial Inclusion for Women: Impact Evaluation on Islamic Microfinance to Women’s Empowerment in Indonesia

Umi Karomah Yaumidin (), Diah Setiari Suhodo, Putri Irma Yuniarti and Achsanah Hidayatina
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Umi Karomah Yaumidin: Indonesia Institute of Sciences
Diah Setiari Suhodo: Indonesia Institute of Sciences
Putri Irma Yuniarti: Indonesia Institute of Sciences
Achsanah Hidayatina: Indonesia Institute of Sciences

Chapter Chapter 3 in Financial Inclusion and Poverty Alleviation, 2017, pp 81-140 from Palgrave Macmillan

Abstract: Abstract This chapter evaluates the impact of the Islamic microfinance institution toward the women empowerment. We surveyed approximately two hundred and forty women who had been involved in the microfinance of the Misykat program in the Dompet Peduli Ummat of Daarut Tauhid and BAZNAS in Bandung. The primary data collection was held in two sessions, starting from June to December 2014. The causal effect of the credit on empowerment was identified using quasi-experimental setting with proxy controls for latent heterogeneity between the control and the treatment groups. The study suggests that women involvement in the microfinance improves their position within the household through (i) access to independent income; (ii) control over savings and credit use; and (iii) ability to bring productive asset to household economy. In addition, using the matching propensity score and the instrumental variable methods helps address the bias selection in a cross-sectional setting.

Keywords: Islamic microfinance; Women empowerment; Zakah management; Poverty alleviation; Propensity score matching (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:pal:psibcp:978-3-319-69799-4_3

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DOI: 10.1007/978-3-319-69799-4_3

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