The relation between access to microcredit and domestic violence

Type Thesis or Dissertation - Master Thesis for Msc Economics
Title The relation between access to microcredit and domestic violence
Author(s)
Publication (Day/Month/Year) 2015
Abstract
Because of inconsistent findings in former studies to the relation between access to microcredit and domestic violence, this thesis aims to broaden the understanding of this relation by assessing household income and women’s autonomy as channels. This research is conducted using a difference-in-difference analysis together with instrumental variables on data from the IMAGE study in South Africa. Women’s autonomy is identified as the main channel. The IMAGE program reduced domestic violence through an increase in autonomy with 0.379 standard deviation, while the raise in household income increased domestic violence with 0.088 standard deviation. This raise in household income also enlarged the wife’s autonomy with 0.107 standard deviation. Adding up these results suggests that the IMAGE program reduced domestic violence with 0.291 standard deviation, which is close to the directly measured effect of 0.275 standard deviation. It is therefore conclude that the effect from access to microcredit on domestic violence is closely predicted by changes in women’s autonomy and household income as channels.

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