The impact of savings-led microfinance on the lives of refugees
Year: 2024
Type: article
Abstract: In 2016 the United Nations changed the focus of refugee policies from one of humanitarian aid to one focused on economic development and self-reliance. In this paper, we analyze the impact of savings-led microfinance on South Sudanese refugees in Uganda. Due to non-randomization, we implement doubly robust, difference-in-difference estimation. Results suggest that refugee members of a popular village savings and loan program significantly increase their savings and borrowing relative to non-member refugees, and experience significant improvements in several key indicators, including food security, home improvement, and income-generating assets. After participation, refugees are better positioned to preserve assets in response to future unexpected and infrequent expenditures. Key mechanisms may include improved financial access and socially proximate peer monitoring. The results suggest that finding ways to better leverage group affinity and build social cohesion could increase the effectiveness of similar programs aimed at helping refugees.
Authors: Stephen DeLoach, Alexa Rasmussen
Institution: Elon University
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W4404501071