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The Impact of Micro-Banking on Health: Evidence from Self-Help Group Involvement and Child Nutrition

By Madeline Mckelway

Low income is only one nancial problem that poor families in developing countries face; impoverished households must also face irregularity of their low incomes. Self-help groups (SHGs) can enhance consumption stability by relaxing savings and credit constraints. In this study, I investigate the extent to which SHGs improve a particular dimension of household wellbeing: child nutrition. I analyze households aliated with the SHGs started by the People’s Education and Development Organization (P.E.D.O.) in rural Rajasthan, India. Children who had greater levels of exposure to household SHG membership at a young age have healthier anthropometric statuses than their siblings who had relatively less. This relationship does not appear to be driven by events coinciding with SHG involvement or by the tendency for certain children, who were also exposed to SHGs, to receive better nutrition than their siblings. These endings suggest that SHGs could improve child nutrition.

Honors Thesis

Dataset

Advisor: Erica Field, Michelle Connolly | JEL Codes: O1, O12, O15, O16, O22 | Tagged: Microeconomic Analyses of Economic Development; Human Resources for Economic Development; Financial Markets in Economic Development; Project Analysis

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Undergraduate Program Assistant
Jennifer Becker
dus_asst@econ.duke.edu

Director of the Honors Program
Michelle P. Connolly
michelle.connolly@duke.edu