rural finance and intra-household decision-making

INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE

Gender and Agriculture: Reviewing the evidence and the way forward

MoA WAD-ATA-IFPRIJune 17, 2016

Getfam Hotel, Addis Ababa, Ethiopia

Rural Finance and Intra-Household Decision-Making

June 17, 2016

Presentation Outline

1. Background—Data, Intra-HH survey design/outcomes• Ask husbands and wives separately about themselves and their

spouses

2a. Savings—Motivation, Control, Intra-HH knowledge2b. Loans—Sources/Uses, Control, Intra-HH knowledge

3. Conclusions

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Data Sources

Not nationally representative! 400 HH survey in Amhara—200 MHH, 200 FHH. From the 200

MHH, the spouses were separately interviewed. Conducted in 2015

3000 HH survey in Tigray, Amhara, Oromia, SNNP. Conducted with HH heads only in 2012.

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1a. Background—Household Demographics

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MHH—Larger family, Married, Better EducatedFemale Spouse—Younger, less educated, not crop focusedFHH—Older, not married, smaller family, less educated

1b. Intra-HH survey-Design

Example—Crop Parcel Management—MHHAll of the following are true but give different levels of information. Asking just HH head:-Who is principal decision-maker in MHH?

99% say head-Who makes decisions on the plot (add joint-husband and/or wife)?

71% says joint

Asking husband and wife separately:-On a scale of 1-5 reveals relative extent of husband/wife control

Wife 2 – 3 (very few/some), Husband 4 -5 (most/all decisions)

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1b. Intra-Household Survey-Design (cont.)

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Asking husbands and wives separately to rank both their own and their spouse’s level of decision-making on a scale of 1-5 reveals a

more in-depth understanding of decisions in the household.

1c-Intra-Household Survey—Outcomes

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Decisions vary by subject.

1d. Intra-Household Survey--Outcomes

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Men dominate input/production decisions. In addition, men are 2X as likely to overestimate women’s own

evaluation of decision-making (ie. women don’t believe they have as much decision-making ability as their husbands think they do).

2. Issues of Intra-HH Rural Finance

a. Savings—Motivation, Control, Intra-HH knowledge

b. Credit—Source/Use, Control, Intra-HH knowledge

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2a. Savings—Motivations

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Somewhat different sex-disaggregated motivations and ability to save. FHH more similar to female spouses than MHH.

2a. Savings—Motivations (cont.)

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Between 25 – 28% of married men/women listed—Prevent Family Members from Spending as a top 2 reason to have a formal savings account.

Women are 3X more likely to not know—Financial Literacy?

2a-Savings—Control (who is saving?)

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20% of married individuals do not participate in savings.30% have the husband only and 44% both participate.

Self-reported average participation: Husband .81***, Wife .52***=99% stat. difference, (FHH .77)

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2a. Savings—Intra-HH Knowledge

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When wives are asked about husband’s savings they underestimate.Consistent with previous preventing family members from spending response

Participation: Husband .96**, Wife .89 (**95% sign.)

Men do not significantly underestimate women’s savings participation..

2b. Loans—Source

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MHH are more likely to receive loans.MHH slightly more likely to use Savings and Credit Institutions.

FHH slightly more use of MFI’s

2b. Loans—Use

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MHH have 2X loan amounts (at the median).MHH more likely to use for Ag. Inputs, FHH for food.

2b. Loans—Control

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Women are 10x more likely to control loans in FHHs (80.6%) versus MHHs (8.4%)

2b. Loan—Repayment

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Avoid penalties most common response. Wife 3x more likely to not know.

FHH responses between MHH and female spouse.

2—Loans—Intra-HH knoweldge

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Women don’t report having access to emergency funds

3--Conclusion

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1. Women’s roles/responsibilities are different in FHH and MHH• Less financial resources in FHH• Less access to financial resources in MHH

2. Men overestimate women’s own decision-making in MHH3. There are some elements of “Cooperative Conflict” concerning

savings/loans• Protecting family members from savings is an important

response for having formal savings accounts• Men are more likely to hide savings participation• Men control loans in MHH• Men have greater access to emergency funds in the same HH

4. Women are not as financially literate

Thank you!

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