To What Extent Does Microfinance Empower Women? Evidence from Rural Mongolia

Microfinance has become the leading economic development tool for poverty alleviation, rural development and women’s empowerment. This study evaluates the impact of a microfinance program by XacBank, the second largest... [ view full abstract ]

Microfinance has become the leading economic development tool for poverty alleviation, rural development and women’s empowerment. This study evaluates the impact of a microfinance program by XacBank, the second largest microfinance provider in Mongolia, on women in rural Mongolia based on a field experiment done by Attanasio et al. (2015). This study looks at three empowerment dimensions: economic, sociocultural and psychological empowerment. Result shows no significant positive impact of the program on the three empowerment indicators. However, this study finds a positive impact of the loans on family spending and employment.