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Financial Inclusion for Women: Impact Evaluation on Islamic Microfinance to Women’s Empowerment in Indonesia

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Financial Inclusion and Poverty Alleviation

Abstract

This chapter evaluates the impact of the Islamic microfinance institution toward the women empowerment. We surveyed approximately two hundred and forty women who had been involved in the microfinance of the Misykat program in the Dompet Peduli Ummat of Daarut Tauhid and BAZNAS in Bandung. The primary data collection was held in two sessions, starting from June to December 2014. The causal effect of the credit on empowerment was identified using quasi-experimental setting with proxy controls for latent heterogeneity between the control and the treatment groups. The study suggests that women involvement in the microfinance improves their position within the household through (i) access to independent income; (ii) control over savings and credit use; and (iii) ability to bring productive asset to household economy. In addition, using the matching propensity score and the instrumental variable methods helps address the bias selection in a cross-sectional setting.

This report is submitted as part of responsibility as a grantee of East Asian Development Network research grants 2014/2015.

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Authors and Affiliations

  1. Economic Research Centre, Indonesia Institute of Sciences, Widya Graha building 4–5th floor, Jendral Gatot Subroto street No. 10, Jakarta, Indonesia

    Umi Karomah Yaumidin, Diah Setiari Suhodo, Putri Irma Yuniarti & Achsanah Hidayatina

Authors
  1. Umi Karomah Yaumidin
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  2. Diah Setiari Suhodo
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  3. Putri Irma Yuniarti
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  4. Achsanah Hidayatina
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Correspondence to Umi Karomah Yaumidin .

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Editors and Affiliations

  1. Islamic Research and Training Institution, Islamic Development Bank, Jeddah, Saudi Arabia

    Muhamed Zulkhibri

  2. Islamic Research and Training Institution, Islamic Development Bank, Jeddah, Saudi Arabia

    Abdul Ghafar Ismail

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Yaumidin, U.K., Suhodo, D.S., Yuniarti, P.I., Hidayatina, A. (2017). Financial Inclusion for Women: Impact Evaluation on Islamic Microfinance to Women’s Empowerment in Indonesia. In: Zulkhibri, M., Ismail, A. (eds) Financial Inclusion and Poverty Alleviation. Palgrave Studies in Islamic Banking, Finance, and Economics. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-69799-4_3

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  • DOI: https://doi.org/10.1007/978-3-319-69799-4_3

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  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-319-69798-7

  • Online ISBN: 978-3-319-69799-4

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