Credit Access and Life Satisfaction: Evaluating the Nonmonetary Effects of Micro Finance

25 Pages Posted: 30 Jan 2014

See all articles by Leonardo Becchetti

Leonardo Becchetti

University of Rome Tor Vergata - Faculty of Economics

Pierluigi Conzo

University of Turin - Department of Economics and Statistics; Collegio Carlo Alberto

Date Written: November 2009

Abstract

Microfinance Institutions (MFIs) are used to claim that their impact goes beyond money since rescuing from exclusion uncollateralized poor borrowers significantly affects their dignity, self-esteem, social recognition, future economic perspectives and, through it, life satisfaction. Our article aims to verify the validity of this claim by evaluating whether access to microfinance loans has significant direct impact on life satisfaction beyond its indirect impact via current income changes. Empirical findings on a sample of poor borrowers in the suburbs of Buenos Aires show that, after controlling for survivorship, selection and interview bias, microfinance membership has a significant and positive effect on life satisfaction.

Keywords: microfinance, happiness, impact study

JEL Classification: G20, I31, I32, O16

Suggested Citation

Becchetti, Leonardo and Conzo, Pierluigi, Credit Access and Life Satisfaction: Evaluating the Nonmonetary Effects of Micro Finance (November 2009). Applied Economics, Vol. 45, No. 9, 2013, Available at SSRN: https://ssrn.com/abstract=2387443

Leonardo Becchetti

University of Rome Tor Vergata - Faculty of Economics ( email )

Via Columbia, 2
I-00133 Rome
Italy

Pierluigi Conzo (Contact Author)

University of Turin - Department of Economics and Statistics ( email )

Campus Luigi Einaudi
Lungo Dora Siena 100 A
Torino, Torino 10153
Italy
011/6703892 (Phone)
011/6703895 (Fax)

HOME PAGE: http://www.pieroconzo.altervista.org/wordpress/

Collegio Carlo Alberto ( email )

Piazza Arbarello, 8
Torino, 10122
Italy

HOME PAGE: http://www.carloalberto.org/people/faculty/affiliates/pierluigi-conzo/

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