How microfinance empowers women in Côte d’Ivoire

Abstract

This study deals with the effect of microcredit on women’s livelihood and empowerment in rural areas of Côte d’Ivoire. A cross-section survey was conducted among 185 borrowers from two microfinance institutions and 209 non-borrowers in rural areas of Côte d’Ivoire. In addition, a focus group discussion was held with each of the two women groups. After matching the two groups on the probability of obtaining credit, we found that the microcredit group on average had a higher income and a higher value of household assets than the non-borrowers. No differences in the value of personal women’s assets were found. Furthermore, on one hand women’s decision-making power in the household, as indicated by their strategic gender needs, was positively related to the probability of obtaining microcredit. On the other hand receiving microcredit tended to increase their decision-making power.