| By: |
Lucia, Dalla Pellegrina;
Giorgio, Di Maio;
Paolo, Landoni;
Beatrice, Rama |
| Abstract: |
This study is based on a randomized control trial (RCT) aimed at understanding
the effectiveness of a financial literacy pilot program conducted in 2014-2016
at the Institute for Indian Mother and Child, a non-profit microfinance
institution based near Kolkata. Significant impacts are revealed in terms of
improvements in saving accumulation and punctuality in the repayment of the
loan instalments for borrowers belonging to the treated group, compared to the
group of borrowers who did not participated to the program. In particular,
positive contribution emerges from the evolution of both the cognitive skills
and the level of financial knowledge developed by the beneficiaries during the
training program. Estimates provide evidence that enhancing cognitive
abilities turn out to be strongly beneficial in fostering the accumulation
savings, whereas financial principles also had an (although weaker) impact on
stimulating a more timely reimbursement of the instalments. We conclude that
the financial literacy pilot program has significantly activated women
cognitive abilities, giving them the opportunity to apply them both in the
course and in their businesses. |
| Keywords: |
Microfinance; financial literacy; randomized control trial, repayment performance; savings. |
| JEL: |
I21 I24 I28 J13 J24 |
| Date: |
2019–05 |
| URL: |
http://d.repec.org/n?u=RePEc:mib:wpaper:412&r=all |