Reduction In Income Research Articles

Impacts of Seasonal Nature of Employment on the Income Stability of the Farm Laborers’ Household

Farm workers or laborers are essential as they provide the critical labor needed to cultivate, harvest, and sustain the agricultural processes that ensure food security and drive the agricultural economy. However, in the Philippine agriculture landscape, farm laborers are heavily affected by the seasonality of their employment. The study on the impact of seasonal employment on the income stability of the farm laborer's household remains under exploration. This participatory action research (PAR) aimed to explore the impact of the seasonal nature of employment on the income stability of the farm laborer’s household in Mapurog, Sapad, Lanao del Norte, through resource-flow activity with one-on-one interviews and observations. This is analyzed using the reflexive thematic analysis. The study revealed a complex impact of this developmental issue, including a significant reduction in income during off-peak seasons and increased reliance on informal credit sources. Children stop attending school to engage in labor and help their parents, essential daily needs remain unmet, access to healthcare is deprioritized, and mental distress pervades the community. Furthermore, the research identifies reliance on loans, credit institutions, and extended family arrangements as coping mechanisms for income instability. While these strategies demonstrate the resourcefulness and resiliency of the farm laborers, they exacerbate financial distress rather than alleviate it. The findings suggest that government policies should improve access to education, such as scholarship programs that allow children to attend school without the economic pressure to work. Additionally, financial policies could include the development of alternative and sustainable economic support systems that reduce dependence on loans and debt. Lastly, comprehensive social protection programs should be implemented to provide safety nets for vulnerable families, addressing the root causes of income instability and promoting long-term community resilience.

Поведінка споживача в умовах кризи та невизначеності: мікроекономічний аналіз

The aim of the article is to study the features of consumer behavior in conditions of crisis and uncertainty. The article analyzes the research on the rationality of consumer choice. The main approaches to assessing utility and consumer behavior have been allocated. Currently, half of ordinary citizens prioritize buying foods; the next category in terms of specific gravity is medicines; in third place – clothes and shoes; fourth place – hygiene and personal care products. It is found that the last positions are occupied by purchases related to things for the home, furniture and household appliances, because they are designed to satisfy secondary needs, therefore the demand for them at this time is very low. Particular attention is paid to the issue of consumer income and consumer choice in conditions of limited income. According to the results, the following trend can be observed: 40% of respondents are loyal to those labels and brands, same as the general set of products they would buy, and the reduction in income led to a reduction in quantitative indicators; in second place in terms of the number of responses is the category of people who switched to cheaper goods or substitute goods; only 7% said they did not change the level of their spending in any way (although in 2021 this figure was twice as much). Taking into account the microeconomic approach, the main factors of consumer choice have been identified. Among the most important factors, special attention is paid to: support for the Armed Forces of Ukraine; the brand’s activities and interaction with russia; volunteering; clear political position and brand language. If we study the results of the survey on the factors of brand choice by age categories, there is a clear tendency that the youngest group of respondents, namely people aged 18-24, are the most sensitive to the above factors. It is determined that young people are the most meticulous about brand policy and methods of conducting their activities, and it is especially important for them that the values of the brand and their behavior correspond to the current situation in which all Ukrainian citizens find themselves. A scheme of behavior of end users is presented. The influence of military aggression on the rational behavior of consumers is substantiated.

Пріоритети та інструментарій зміцнення фінансової безпеки сектора малого підприємництва в умовах нестабільності

The article updates the issues of ensuring financial security and stability of the entities of the small business sector in Ukraine in the conditions of critically acute instability caused by the consequences of the ongoing full-scale war. The purpose of the study is to substantiate the priorities and tools for strengthening the financial security of the small business sector of Ukraine in conditions of instability. The goal of the State policy of strengthening the financial security of the small business sector of Ukraine in the conditions of wartime and instability should be the systematic improvement of the business environment of entrepreneurial activity in the context of minimizing financial challenges and threats, improving the financial and resource provision and the financial and economic condition of small business entities, ensuring the development and capitalization of this sector of the economy. New challenges and threats to the financial security of small business entities of Ukraine in the conditions of wartime have been identified, namely, a decrease in the solvent demand of the population, a narrowing of the capacity of domestic demand for consumer goods and services and a reduction in income, an increase in the cost of resources, an increase in the cost price and a decrease in the level of economic profitability, difficulties with logistics and transportation of goods, etc. It has been proven that the achievement of this goal will be facilitated by the implementation of a system of strategic priorities, namely: improving the financial and credit support of small businesses; formation of a system of investment support for development projects of small business entities; expansion of monetary and lending opportunities; de-shadowing of the capital of small business entities and restructuring of their debt obligations; small business effectivization through the growth of the sector of innovative and technologically active entrepreneurship; implementing the potential of the insurance sector in mitigating the financial risks of small business entities.

Gender Differences in the Association between Psychological Distress and Sociability among Older Adult Survivors: Cross-Sectional Survey Four Years after the 2016 Kumamoto Earthquake in Japan.

Mental health deterioration after a disaster is a concern. Individuals' sociability is expected to relate to the risk of this deterioration; however, research focusing on older adults is lacking. We aimed to investigate the relationship between psychological distress and sociability in older adults who survived the 2016 Kumamoto earthquake. We conducted a self-reported questionnaire survey in 2020. Data on 3,588 people aged 65 years and over (2,024 women and 1,564 men, mean age 74.6 ± 7.2, mean ± standard deviation) were analyzed. The overall prevalence of psychological distress (the Kessler psychological distress scale: K6 ≧ 10) was 10.5%; by gender, it was 11.2% in women and 9.5% in men. Logistic regression analysis revealed that, in the total sample, age, gender, public housing, reduction in income resulting from the coronavirus disease 2019 pandemic, self-rated unhealthy conditions, subjective social isolation, and a lack of awareness of community events were positively associated with psychological distress. For women, a lack of community participation was positively related to psychological distress. For men, not knowing the change in school district after relocation was negatively associated with psychological distress, probably due to men's scarce community participation and reliance on friendships, compared to women's stronger dependence on community. Moreover, having a family member or friend to consult with was associated with a lower risk of psychological distress, regardless of gender. Gender differences were related to different conditions of social participation and types of social relationships. Enhancing community participation and family relationships among women and social contact with friends among men is essential.

The role of informal support systems during illness: A qualitative study of solo self-employed workers in Ontario, Canada.

Today's labor market has changed over time, shifting from mostly full-time, secure, and standard employment relationships to mostly entrepreneurial and precarious working arrangements. In this context, self-employment (SE), a prominent type of precarious work, has been growing rapidly due to globalization, automation, technological advances, and the rise of the 'gig' economy, among other factors. Employment precarity profoundly impacts workers' health and well-being by undermining the comprehensiveness of social security systems, including occupational health and safety systems. This study examined how self-employed (SE'd) workers sought out support from informal support systems following illness, injury, and income reduction or loss. Based on in-depth interviews with 24 solo SE'd people in Ontario, Canada, narrative analysis was conducted of participants' experiences with available informal supports following illness or injury. We identified three main ways that SE'd workers managed to sustain their businesses during periods of need: (i) by relying on savings; (ii) accessing loans and financial support through social networks, and (iii) receiving emotional and practical support. We conclude that SE'd workers managed to survive despite social security system coverage gaps by drawing on informal support systems.

The problem of international class solidification in the post pandemic era -- An analysis based on Marxist theory

Since the outbreak of COVID-19, the pandemic has significantly impacted the global economy and deeply affected social structures and class mobility. It has exacerbated income inequality, employment difficulties, and unequal distribution of social resources, leading to more pronounced social stratification. In China, despite government economic stimulus policies, small and medium-sized enterprises and the service industry have faced severe challenges, resulting in significant unemployment and income reduction among low-income workers. The rise of platform capitalism has introduced new labor relations, raising concerns about labor rights. This study uses a Marxist perspective to analyze post-pandemic social stratification in China, focusing on economic resource distribution, access to educational resources, and the effectiveness of social policies. The objective is to understand the structural causes and propose policy recommendations to promote social equity and mobility.

Metals Streaming and Royalty Financing: A Framework for Assessing Mining Sector Financial Benefit–Sharing Implications for Governments

This chapter offers a simplified approach to assessing the potential impact of metals streaming and royalty financing on government revenues. Subject to the availability and quality of information, a revenue impact ratio can be determined by comparing the potential revenues to the government from more traditional forms of financing with potential revenues to the government from metals streaming or royalty financing.The chapter considers the key features, advantages, and disadvantages of these alternative funding options for mining projects, and then develops an illustrative model to demonstrate their potential impact on government revenues. This forms the basis on which to identify the key challenges, and the policy considerations when addressing them.While metals streaming provides upfront capital and a potential hedge against price risk for producers, it could also limit the upside potential for both the mining company and the host government. On the other hand, royalty financing offers stable income streams and diversification opportunities for investors but may lack direct exposure to metal price increases.The ultimate risk faced by resource-rich governments as a result of an increase in the use of metals streaming and royalty financing arrangements is a suboptimal share of the potential benefits that will accrue from the mining operations. Specifically, the risk is of a reduction in taxable income and royalty revenue.At the heart of the policy considerations pertaining to resolving these challenges and risks is reducing information asymmetry between the government, the mining company and the streaming or royalty company. One important way to do this is to strengthen tax legislation and enforcement mechanisms. Implementing anti-avoidance rules, such as interest limitation rules, can limit the ability of metals streaming and royalty financing companies to exploit tax and other loopholes. Other features with which to strengthen the legislation include clear minerals pricing rules, and clearer provisions regarding withholding taxes.

Impact of financial toxicity on adults with cancer during the COVID-19 pandemic: an integrative review.

to identify the repercussions of financial toxicity on the lives of adult cancer patients during the COVID-19 pandemic. an integrative review was conducted using the PubMed, Web of Science, Scopus, and Embase databases, as well as the Virtual Health Library portal, in March 2023. out of 62 studies found, 13 were included for analysis. The primary repercussions of financial toxicity included difficulties in covering basic expenses such as food, housing, medication, transportation, and internet access; increased anxiety and concerns related to health and financial situations; reduction or absence of income; challenges in obtaining treatment or accessing healthcare services; rising expenses; and telemedicine as a less burdensome alternative. the pandemic has exacerbated financial toxicity; therefore, healthcare teams must recognize it as an adverse event of oncological treatment and understand its potential to affect various aspects of patients' lives.

Income Inequality and Economic Growth in Nepal

The trade-off between economic growth and income inequality is a subject widely discussed within Economics. Several studies have revealed different relationships while using various methods. This study used data from 1986-2021 for Nepal to reveal the relationship between economic growth and income inequality. The ADF test was used in the beginning to test for unit roots. Then, the study employed Ordinary Least Squares (OLS) to reveal the parameters. The empirical evidence from the model suggested that economic growth in Nepal, as measured, did not have a significant direct effect on income inequality. Rather, inequality has been persistent over the years in Nepal. Moreover, despite an inverted U-shape being hinted, the data did not provide strong enough evidence to confirm this relationship. As a result, policies targetting income redistribution and reduction of structural inequalities need to be employed to tackle the persistent nature of inequality in Nepal.

Climate Change Impacts on Household Income in Pakistan: An Empirical Analysis

As climate change continues to pose a significant challenge globally, this study examines its impact on household income, delineating the differential impacts across agricultural and non-agricultural sectors in Pakistan. Utilizing household data from 2020 for 156,441 households across 126 districts of Pakistan, along with climate variable data spanning from 1960 to 2020, the research employs multiple regression analysis with robust standard errors to explore these impacts. The findings reveal that changes in the mean values of temperature and precipitation, as well as the variability of these climate variables, have a statistically significant impact on household income. Specifically, a one-degree Celsius rise in average temperature leads to a 3.3% decrease in income for households in the agricultural sector and a 0.4% decrease for those in non-agricultural sectors. The variability in temperature, indicated by a one-degree increase in its standard deviation, similarly results in a 4% income reduction for households across both sectors. Conversely, a one-decimeter increase in average precipitation is associated with a modest income increase of 0.33% and 0.19% for the agricultural and non-agricultural sectors, respectively. However, greater variability in precipitation adversely affects income in both sectors. The research highlights the vulnerability of households, especially those in agriculture, to climate change and shows non-agricultural sectors are also affected. It offers insights into climate change's economic impacts and suggests developing targeted policies to improve adaptation and resilience.

POST-COVID-19 TOURISM SECTOR POLICY RECOMMENDATIONS FOR SHORT, MEDIUM, AND LONG-TERM PLANNING

Tourism is one of the sectors most affected by the COVID-19 pandemic. This pandemic has prompted governments worldwide to implement policies to limit community activities, both within and between countries. The tourism sector has been significantly affected, especially regarding income reduction, due to the cessation of supporting factors such as providing accommodation and food and beverages; retail and wholesale trade; car and motorcycle repairs; and transportation and warehousing. Before the emergence of the COVID-19 pandemic, the focus of 5-year tourism development in Indonesia was on strengthening priority tourism destinations and revitalizing Bali destinations. The COVID-19 pandemic that began in March 2020 has changed the 5-year tourism sector projection, followed by various policies to prevent the spread of this virus and focus on public health. This study aims to present a portrait of Indonesian tourism at the beginning of the COVID-19 pandemic and provide recommendations for recovering economic policy adaptations, both short-term and medium- and long-term. The method used is a literature review with a qualitative and descriptive approach to existing policies. The results of the analysis recommend that the assessment of tourism development planning be emphasized on general stimulus, stimulus for Small, micro, and Medium Enterprises (MSMEs), structuring accommodation packages, transportation and access, taxation stimulus, technical guidance, strengthening tourism diversification, and strengthening the supply and demand side of the tourism sector.

An integrated accounting system of the economic-social-ecological framework for assessing the value of intensive land use: A case study of the Taihu Lake governance project

Assessing the value of land resources is a prerequisite for resource management, as well as for resolving the conflict between supply and demand. In the realm of intensive land use (ILU), a standardized framework for accounting methods from a project perspective has yet to be established. Therefore, taking the Taihu Lake governance project (TLGP) (which includes the Xingou River project, Xinmeng River project and Zoumatang River project) as a case study, this paper firstly constructs an integrated value accounting system based on economic, social and ecological frameworks. Furthermore, with consideration of physical parameters, we incorporated the integrated land section price method, income reduction method, alternative market method, and equivalent factor method are all incorporated to assess the value of ILU at distinct stages within the research area. This approach serves to elucidate the evolving dynamics of ILU valuation. The results showed that: (1) There were significant differences in the values generated by the ILU in different projects. The integrated value of the TLGP brought about by ILU was 177,189,300 yuan, and the ILU of the Xinmeng River project was significantly higher than the Zoumatang River project and the Xingou River project. (2) The ILU at different stages basically displayed the law of diminishing marginal utility. Consistent with changes in the different stages of the TLGP, the value of ILU in Stage I of the Zoumatang River project and the Xingou River project was significantly higher than that in Stage II. Additionally, the accounting system proposed in this study has the advantages of reasonable index setting and simple process operability. This helps to realize the comparison of ILU values across projects and stages. The results of this study can provide a reference for the management and sustainable use of land resources during the construction of water conservancy and other projects.

How Does the Ageing Population Affect China’s Household Savings Rate? Empirical Study Based on China’s Micro Household Data

The impact of the ageing population on China’s economy and society is multifaceted, with the impact on household savings rates being particularly important. This study investigates the influence of population ageing on household savings rates, utilizing data obtained from the China Household Finance Survey (CHFS) spanning the period from 2015 to 2019. The study found that ageing has a significant negative effect on household savings rates. This finding suggests that there is a significant life-cycle effect on changes in household savings rates in China, which is not conducive to the formation of a second demographic dividend. From the perspective of mediating variables, population ageing growth reduces household income, thereby further decreasing the household savings rate, with income reduction being the main factor causing the decline in the household savings rate. Additionally, it has been found that the impact of population ageing on the household savings rate exhibits significant heterogeneity between urban and rural areas. The increasing proportion of the elderly population in rural areas has a stronger negative effect on the household savings rate.

Assessment of the state of fixed assets of enterprises and organizations in the Arctic zone of the Russian Federation as a factor determining its sustainable development

The analysis of the state of fixed assets is important for determining the production capabilities of the organization and strategic prospects of its development. The value of fixed assets determines the production capacity of the company, timely renewal of fixed assets increases their productivity and operational efficiency, while reducing the probability of losses caused by equipment failure as a result of systemic depreciation. Decrease in the rate of fixed assets reproduction leads to decline in production capacity and productivity level, increase in repair costs, decrease in the quality and competitiveness of products, reduction of income. The condition and degree of efficiency of fixed assets use affect the final results of economic activity of organizations of all forms of ownership and organizational and legal forms. The aim of this study is to assess the condition of fixed assets of enterprises and organizations in the territories of the regions included in the Arctic zone of the Russian Federation, since it is their availability and quality that is the basis for sustainable development and determines the available economic and production potential. Economic and statistical and comparative analysis were chosen as research methods. According to the results of the analysis, it was found out that the state of fixed assets in the Russian Federation as a whole is deteriorating, the measures taken to stimulate entrepreneurs to modernize production facilities, although caused some positive changes, but the expected results have not been achieved. The described situation is typical for the whole territory of the country, but it is especially relevant for the Arctic zone, where the realization of large-scale production and infrastructure projects is planned in the near future. To solve this problem will require joint efforts and interest in the result not only from the state, but also from business.

Grass clover swards: A way out for Dutch dairy farms under legislative pressure?

CONTEXTPolicy measures have been taken to improve water quality in the Netherlands. These measures include the abolishment of derogation, which allowed dairy farmers to go beyond the maximum application of 170 kg nitrogen (N) from organic fertiliser per hectare, and additional measures of the 7th Nitrates Action program. Grass-clover swards, known for their symbiotic N fixation, could be a strategy to deal with stricter N policies and can potentially improve the environmental sustainability and economic viability of Dutch dairy farms. OBJECTIVEThe aim was to assess the effects of stricter N policies on the farm structure, farm income and environmental performance of a representative Dutch dairy farm on a sandy soil, and to assess the effect of incorporating perennial ryegrass-red white clover (GCrw) swards and perennial ryegrass-white clover (GCw) swards into the grassland management of this farm using a model. METHODSA whole-dairy farm linear programming model was used with the objective function to maximize farm income. The model was combined with a farm nutrient balance and life-cycle assessment to determine the impact on nutrient surpluses and greenhouse gas emissions. We modelled a representative Dutch dairy farm with perennial ryegrass (PRG) before and after implementing stricter N policies. Thereafter, the implications of implementing GCrw and GCw swards was assessed. RESULTS AND CONCLUSIONSIncluding the policy measures increased the share of maize land (+12%), decreased the number of dairy cows (-9 cows), reduced farm income (€-18,858 yr-1), led to similar greenhouse gas emissions (∼800 kg carbon dioxide equivalents (CO2-eq) per tonne (t) of fat and protein corrected milk (FPCM)), and resulted in a lower N surplus (-65 kg ha-1 yr-1) and phosphate surplus (-4.4 kg ha-1 yr-1) for a scenario with only PRG. The use of GCrw and GCw swards could partly compensate for the reduction in farm income (€+9,255 up to +14,706 yr-1). A combination of PRG, GCrw and GCw resulted in the highest farm income. The use of grass-clover swards only had the most positive effect on greenhouse gas emissions (767 kg CO2-eq t-1 FPCM) and N surplus (113 kg ha-1 yr-1). Sensitivity analysis showed the importance of yields and feed characteristics on the obtained farm income. SIGNIFICIANCEGrass-clover swards might partly compensate for the negative economic consequences of stricter N policies for Dutch dairy farms. Furthermore, implementing grass-clover swards reduced the GHG emission intensity of milk, but not always nutrient surpluses per hectare of farm land.

Impact of Participation in Young Smart Farmer Program on Smallholder Farmers’ Income: A Propensity Score Matching Analysis

The increase of elderly workers in the agricultural sector will decrease productivity using traditional agriculture production which causes the reduction of income. The Young Smart Farmer program is one of the solutions to solve the problem by developing new generation farmers’ agricultural abilities replacing elderly farmers and creating incentives for the new generation to turn to agricultural occupation. Thus, this paper principally assessed the impact of the participation of young farmers in the YSF program on farm income and the determinants of the YSF program factor of young farmer’s participation in the YSF program. The total number of samplings is 340 comprising 210 participants and 130 non-participants in the YSF program of the northeast area of Thailand. The data were analyzed using descriptive statistics and the propensity score matching approach to estimate the treatment effect of YSF participation on farm income among smallholder farmers. The results presented that the participants were younger with higher education, more experience and technology support, and had higher farm income compared to non-participants. The propensity scores matching results revealed a significant effect between farmer participation and farm income. The increase in farmers’ income from the participation of young smart farmers was estimated to be approximately 6758.59 $/year compared to non-participants of 3066.63 $/year. To encourage young people to participate more in the YSM program the government should provide more support that can stimulate the young farmers’ farming economic activities to improve their quality of living and be fully satisfied with their livelihood. Also, the government should encourage a strong network within the group which consequently increases knowledge sharing, technology, and agricultural activities from the production process to marketing.

Pérdidas de ingresos y de empleo durante la pandemia de COVID-19 y situación financiera de los hogares: evidencia de la EFF

Rationale Drawing on the Spanish Survey of Household Finances (EFF), this article analyses the relationship between the losses of employment or reductions in labour income caused by COVID-19 and the Spanish population’s financial position, uncertainty and life satisfaction. Takeaways •Between 2019 and end-2020, uneven declines in labour income were observed among individuals affected by job retention schemes, lay-offs or business closures, although public assistance mitigated the most pronounced falls. •Between 2017 and 2020, the relative fall in spending on non-durable goods was 6-10 percentage points higher among those affected by such circumstances, reflecting broad-based increases in uncertainty about their future income. •Compared with the unaffected group, levels of indebtedness rose most markedly, and increases in net wealth were most subdued, among those who experienced more protracted job or income losses.

Ethical Challenges of Virtual Reality Technology Interventions for the Vulnerabilities of Patients With Chronic Pain: Exploration of Technician Responsibility.

Chronic pain, a common disease, is a crucial global public health concern. Approximately 20% of the worldwide population is affected by chronic pain, which accounts for 15% to 20% of hospital visits. In Canada, approximately 7.6 million people-or 1 in 5 people-experience chronic pain. Among this population, 60% has either lost their employment or experienced a reduction in income as a result of their pain. The proportion of older people (aged ≥65 years) with chronic pain is high, comprising one-third of the total older population. In addition, the causes of chronic pain and its cures are unknown, and treatment is limited by these unknowns and the dangers of opioids. These essential factors make patients with chronic pain one of the most vulnerable populations. The use of emerging virtual reality (VR) technology as an intervention for chronic pain has consistently demonstrated early effectiveness and has been termed as a "nonpharmacological analgesic." Nevertheless, we must remain vigilant about the potential ethical risks of VR interventions, as inappropriate VR interventions may exacerbate the vulnerabilities of patients. Currently, a central challenge for VR developers is the ambiguity of patient vulnerability and the unpredictability of ethical dilemmas. Therefore, our paper focused on the vulnerability and ethical dilemmas faced by patients with chronic pain in VR interventions. Through an experience-based, prospective ethical examination, we have identified both existing and potential new vulnerabilities and specific manifestations that patients with chronic pain may encounter in VR interventions. Our aim was to highlight the ethical risks that may be present in VR interventions. On one hand, this can help raise awareness among technology developers regarding the vulnerabilities of patients with chronic pain and mitigate technological ethical risks. In addition, it can assist technology developers in determining the priorities for VR technology interventions. These efforts collectively lay a solid foundation for the comprehensive realization of responsible VR technology interventions.

Isolation, Identification and Risk Factors of Staphylococcus aureus Bacteria in Dairy Goat Milk with Subclinical Mastitis in Siliragung District, Banyuwangi Regency

Mastitis is an inflammation of the mammary glands that can cause a sharp reduction in milk production and income for farmers. Subclinical mastitis is mastitis without clinical symptoms but can result in a decrease in the quantity and quality of milk production. One of the main pathogens that cause mastitis namely Staphyloccocus aureus. S. aureus become the biggest problem of mastitis because the cure rate is classified as very low. The risk factors for the occurrence of mastitis, both clinical and subclinical mastitis, can cause a decrease in milk production caused by several factors, including genetic, feed and environmental factors. This study aims to determine the presence of subclinical mastitis in milk of dairy goats with sufferers in Siliragung District, Banyuwangi Regency. Sample testing was carried out at the SIKIA Instrument Laboratory, Airlangga University. Isolation was carried out using MSA (Mannitol Salt Agar) media for further identification consisting of Gram staining and biochemical tests. Some of the biochemical tests used are the catalase test, the coagulase test and the VP test. The results of isolation, observation of characteristics and identification of bacteria in the research that has been carried out show that 64.51% (40/62) of the samples examined were positively identified S. aureus. Results showed that the risk factors for causing subclinical mastitis included cleaning the cage, the number of lactating goats, washing hands before milking, manure and waste management, weaning age and lactation age.

Make Microfinance Great Again: Can Flexibility in Repayments Improve Business Outcomes in North India?

Classic microfinance loan contracts characterised by rigid weekly repayment schedules used by most microfinance institutions (MFIs) offer little flexibility—and little benefit—to borrowers who are poor and have seasonal income. Previous research has also shown that such contracts can negatively affect the economic well-being of poor borrowers leading to underinvestment of capital, selling of productive assets, over-indebtedness through cross-financing from informal sources, reductions in consumption and income, and in some cases, a deterioration in borrowersʼ mental health arising from stress and worry. If lenders offered more flexibility in loan repayment schedules, would it help to overcome some of these problems? To explore this, we tested whether clientsʼ business outcomes were sensitive to various repayment schedules using primary data collected from the clients of three MFIs, a cooperative society and a few local traders specialising in business lending in a village in North India. We analysed alternatives to the rigid contract model, focussing on the degree of flexibility and the length of gap between repayments in the loan schedule. This study finds that clients repaying their loans monthly invested more in their businesses and earned higher income, compared both to those who repaid weekly and to those with an irregular payment schedule. JEL Codes: G12, D12, O16, O12