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Coping with shocks: the impact of Self-Help Groups on migration and food security

Abstract : This paper asks whether local savings and credit associations help poor rural households hit by climatic shocks. Combining data from an original field experiment with meteorological data, I investigate how Self-Help Groups (SHGs) allow households to cope with rainfall shocks in villages of East India over a sevenyear period. I show that SHGs withstand large rainfall shocks remarkably, and that credit flows are very stable in treated villages. As a result, treated households experience a higher food security during the lean season following a drought and increase seasonal migration to mitigate future income shocks. These results imply that small-scale financial institutions like SHGs help to finance temporary risk management strategies and to cope with important covariate income shocks such as droughts.
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https://halshs.archives-ouvertes.fr/halshs-02571730
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Submitted on : Wednesday, May 13, 2020 - 9:56:51 AM
Last modification on : Monday, March 29, 2021 - 2:46:29 PM

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Timothée Demont. Coping with shocks: the impact of Self-Help Groups on migration and food security. 2020. ⟨halshs-02571730⟩

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