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This study examines the impact of microcredit on time allocation outcomes for men and women in order to understand the relationship between microcredit and women’s empowerment. We find little evidence of a link between microcredit and women’s empowerment as women continue to spend most of their time in wage and non-market work; being part of a credit group fails to change this reality. On the other hand, men in the participating households have succeeded in reallocating their work hours toward self-employment, suggesting that, though the program is targeted at women, its real beneficiaries are men.

Hitting the Target, Missing the Point? Microcredit and Women Empowerment in Rural India