Microfinance and Women's Economic Empowerment: An Experimental Evidence

This study attempts to examine impact of Microfinance on economic empowerment of women. Following Multi- Stage (mixed) Sampling, the data has been gathered using Structured Interview Schedule from 370 Self Help Group women members from rural areas of Kashmir Division formed and nurtured under Umeed scheme of the flagship program - National Rural Livelihood Mission. The present study employed Quasi-Experimental Design that consists of 190 program (treatment) and 180 comparison group members (control). In order to compare the two groups on empowerment indicators, Independent Samples Test has been mainly utilized. The results indicate positive and significant differences between the two groups in economic empowerment indicators – independent income, independent savings, asset generation, control over household income, control over household savings as well as control over large purchases. However, the study reveals larger impact on two indicators of economic empowerment – independent savings and asset generation as shown by Effect Size. It is concluded that Microfinance significantly impacts women's economic empowerment. This study is believed to grab the attention of the policy makers towards further strengthening the program to reap its constructive benefits towards Poverty Alleviation. Due to Multi-dimensional nature of empowerment, the future studies would examine impact of Microfinance on non-economic empowerment as well and extend geographical area.