Rohini Pande

Field, Erica, and Rohini Pande. “Repayment Frequency and Default in Micro-Finance: Evidence from India”. Journal of European Economic Association Papers and Proceedings 6 .(2-3) (2008): , 6 , (2-3), 501-550. Web. Publisher's VersionAbstract

In stark contrast to bank debt contracts, most micro-finance contracts require that repayments start nearly immediately after loan disbursement and occur weekly thereafter. Even though economic theory suggests that a more flexible repayment schedule would benefit clients and potentially improve their repayment capacity, micro-finance practitioners argue that the fiscal discipline imposed by frequent repayment is critical to preventing loan default. In this paper we use data from a field experiment which randomized client assignment to a weekly or monthly repayment schedule and find no significant effect of type of repayment schedule on client delinquency or default. Our findings suggest that, among micro-finance clients who are willing to borrow at either weekly or monthly repayment schedules, a more flexible schedule can significantly lower transaction costs without increasing client default. (JEL: O12, O16, O22)

Feigenberg, Ben, Erica Field, and Rohini Pande. “The Economic Returns to Social Interaction: Experimental Evidence from Microfinance”. Review of Economic Studies (2013). Web. Publisher's VersionAbstract

Microfinance clients were randomly assigned to repayment groups that met either weekly or monthly during their first loan cycle, and then graduated to identical meeting frequency for their second loan. Long-run survey data and a follow-up public goods experiment reveal that clients initially assigned to weekly groups interact more often and exhibit a higher willingness to pool risk with group members from their first loan cycle nearly two years after the experiment. They were also three times less likely to default on their second loan. Evidence from an additional treatment arm shows that, holding meeting frequency fixed, the pattern is insensitive to repayment frequency during the first loan cycle. Taken together, these findings constitute the first experimental evidence on the economic returns to social interaction, and provide an alternative explanation for the success of the group lending model in reducing default risk.

Field, Erica, et al.Repayment Flexibility Can Reduce Financial Stress: A Randomized Control Trial with Microfinance Clients in India.”. PLoS One 79 (2012). Web. Publisher's VersionAbstract

Financial stress is widely believed to cause health problems. However, policies seeking to relieve financial stress by limiting debt levels of poor households may directly worsen their economic well-being. We evaluate an alternative policy – increasing the repayment flexibility of debt contracts. A field experiment randomly assigned microfinance clients to a monthly or a traditional weekly installment schedule (N = 200). We used cell phones to gather survey data on income, expenditure, and financial stress every 48 hours over seven weeks. Clients repaying monthly were 51 percent less likely to report feeling “worried, tense, or anxious” about repaying, were 54 percent more likely to report feeling confident about repaying, and reported spending less time thinking about their loan compared to weekly clients. Monthly clients also reported higher business investment and income, suggesting that the flexibility encouraged them to invest their loans more profitably, which ultimately reduced financial stress.

Edlund, Lena, and Rohini Pande. “Why Have Women Become Left-Wing? The Political Gender Gap and the Decline in Marriage”. Quarterly Journal of Economics 117.3 (2002): , 117, 3, 917-961. Web. Publisher's VersionAbstract

The last three decades have witnessed the rise of a pohtical gender gap in the United States wherein more women than men favor the Democratic party. We trace this development to the decline in marriage, which we posit has made men richer and women poorer. Data for the United States support this argument. First, there is a strong positive correlation between state divorce prevalence and the political gender gap—higher divorce prevalence reduces support for the Democrats among men but not women. Second, longitudinal data show that following marriage (divorce), women are less (more) likely to support the Democratic party.

Beaman, Lori, Rohini Pande, and Alexandra Cirone. “Chapter 14: Politics as a Male Domain and Empowerment in India”. The Impact of Gender Quotas. Oxford University Press, 2012. Web. Publisher's VersionAbstract
  • First comparative, multi-country study of the impact of gender quotas across descriptive, substantive and symbolic dimensions of representation
  • Bridges literatures of gender quotas and women's political representation
  • Uses case studies from twelve countries to build broad theories about gender quotas and women's representation
Beaman, Lori A, et al.Powerful Women: Does Exposure Reduce Bias?”. Quarterly Journal of Economics 124.4 (2009): , 124, 4, 1497-1540. Web. Publisher's VersionAbstract

We exploit random assignment of gender quotas for leadership positions on Indian village councils to show that prior exposure to a female leader is associated with electoral gains for women. After ten years of quotas, women are more likely to stand for, and win, elected positions in councils required to have a female chief councilor in the previous two elections. We provide experimental and survey evidence on one channel of influence—changes in voter attitudes. Prior exposure to a female chief councilor improves perceptions of female leader effectiveness and weakens stereotypes about gender roles in the public and domestic spheres.

Available on the Gender Action Portal:

Beaman, Lori A, et al.Female Leadership Raises Aspirations and Educational Attainment for Girls: A Policy Experiment in India”. Science 335.6068 (2012): , 335, 6068, 582-586. Web. Publisher's VersionAbstract

Exploiting a randomized natural experiment in India, we show that female leadership influences adolescent girls’ career aspirations and educational attainment. A 1993 law reserved leadership positions for women in randomly selected village councils. Using 8453 surveys of adolescents aged 11 to 15 and their parents in 495 villages, we found that, relative to villages in which such positions were never reserved, the gender gap in aspirations closed by 20% in parents and 32% in adolescents in villages assigned a female leader for two election cycles. The gender gap in adolescent educational attainment was erased, and girls spent less time on household chores. We found no evidence of changes in young women’s labor market opportunities, which suggests that the impact of women leaders primarily reflects a role model effect.

Available on the Gender Action Portal:

Field, Erica, et al.Does the Classic Microfinance Model Discourage Entrepreneurship among the Poor? Experimental Evidence from India”. American Economic review 103.6 (2013): , 103, 6, 2196-2226. Web. Publisher's VersionAbstract
Do the repayment requirements of the classic microfinance contract inhibit investment in high-return but illiquid business opportunities among the poor? Using a field experiment, we compare the classic contract which requires that repayment begin immediately after loan disbursement to a contract that includes a two-month grace period. The provision of a grace period increased short-run business investment and long-run profits but also default rates. The results, thus, indicate that debt contracts that require early repayment discourage illiquid risky investment and thereby limit the potential impact of microfinance on microenterprise growth and household poverty.

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