Scandinavian Working Papers in Economics

Working Paper Series,
Uppsala University, Department of Economics

No 2009:11: The Impact of Skill Development and Human Capital Training on Self Help Groups.

Ranjula Bali Swain ()
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Ranjula Bali Swain: Department of Economics, Postal: Department of Economics, Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden

Abstract: We evaluate the effect of training, in both skill development and human capital, provided by facilitators of self help groups (SHGs). Indian SHGs are unique in that they are mainly NGOformed microfinance groups but later funded by commercial banks. The results suggest that, in general, training does not impact assets but training can reverse the potentially negative effect of credit on income. Moreover, training is more effective for asset accumulation in villages with better infrastructure. In terms of training delivery, results show that the most effective linkage is when NGOs form groups and banks finance SHGs.

Keywords: Asia; India; microfinance; impact studies; training; Self Help Groups

JEL-codes: G21; I32; O12

28 pages, July 1, 2009

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