Melting pot versus salad bowl: Exploring the effect of composition diversity on saving groups' performance

Richard Sebaggala, Roy Mersland and Bert D'espallier
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Richard Sebaggala: University of Agder
Bert D'espallier: KU Leuven

French Stata Users' Group Meetings 2024 from Stata Users Group

Abstract: Saving groups (SGs) are an important driver for saving mobilization and credit and thus effective vehicles of social and economic change for vulnerable groups. Hence, understanding that factors help them perform successfully is crucial, especially regarding their peculiarities as informal organizations. This study focuses on one essential factor, group composition diversity. By identifying which groups are homogeneous (melting pot) or heterogeneous (salad bowl), the presentation examines how compositional diversity in groups affects the performance of SGs. The study uses lens of faultline theory and data from 688 savings groups belonging to the largest disability inclusive savings group program (iSAVE) in Uganda. Econometric results show that demographic and functional faultlines and their combination have a statistically signi

Date: 2024-06-29
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Persistent link: https://EconPapers.repec.org/RePEc:boc:fsug24:09

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