Impact of Microfinance on Women Empowerment in the Matrilineal Tribal Society of India: An Analysis Using Propensity Score Matching and Difference-in-Difference

Abstract

This study is an evaluation of the impact of microfinance on women empowerment conducted upon clients of the matrilineal tribal society of India that exists in its north east region. It covers a period of five years, where in, data is compiled for 300 microfinance women clients (experimental group [EG]) and 150 non-microfinance women clients (control group [CG)]). For impact evaluation, Propensity Score Matching (PSM) and Difference-in-Difference (DinD) techniques are applied. PSM ensures a matched sample by balancing the EG and CG on covariates and DinD, the impact of microfinance through economic and sociopolitical outcomes. The study highlights that microfinance has a positive impact on income, expenditure and savings. It led to an improvement in asset structure, increased access to livestock, micro machines, family wealth and family savings, education decision-making, improved mobility, communication skills, voicing of concerns, self confidence, increased political participation to promote gender equality, etc. In addition, microfinance amount and profile of the clients are important components in influencing impact. Overall, microfinance is a potent tool of women empowerment even in matrilineal tribal settings.