Does Microcredit Matter for Women Empowerment? A Household Level Study in Khulna District

Abstract

Objective: The aim of this study is to explore the nexus between microcredit and women empowerment from the dimensions of participation in household decision making, involvement in income generating activities and wealth accumulation; participation in household economic activities; consciousness and mobility; and women rights.
Sampling Technique: A total of 80 women including 40 from microcredit takers and 40 from non-takers women were selected randomly to collect the data from two separate villages under Phultala Upazila of Khulna District.
Methods: For data analysis, econometric models such as Principal Component Analysis (PCA) and multiple regression model were applied.
Results: The result of multiple regression model shows that the microcredit taker women are better off regarding women empowerment related to household decision making, and income and wealth accumulation. Whereas, the women from non-taker households are in a better position in case of women empowerment related to participation in household economic activities, and consciousness and mobility. In addition to the role of microcredit on women empowerment, the study found that education of the women plays a significantly positive role in women empowerment while social restriction faced by the women negatively affect their empowerment.
Recommendation: Better monitoring system, training and awareness building programs arranged by the microcredit providing organizations may play a significant role in strengthening women empowerment.