Impact of Credit on the Relative Well?Being of Women: Evidence from the Grameen Bank

summary This study examines the impact of credit on women’s relative well?being in Grameen Bank’s credit programmes. Using a bargaining model of the household, as extended by Amartya Sen, well?being has been defined in terms of three sets of capabilities: (i) autonomy, (ii) control over decision?making within the family, and (iii) relative access to household resources. It is hypothesised that the relative well?being of women and men depends on their respective bargaining power, which in turn depends on three factors: breakdown position, perceived contribution to the family and perceived self?interest. The hypothesis has been tested using a two?stage estimation method to avoid the potential problem of simultaneity bias that may be caused by the self?selection problem. Results indicate that involvement in credit has improved the relative well?being of women in some dimensions, but not in others. Some reasons are advanced for this partial success in improving women’s well?being.