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Social capital as an incentive for participation and formation of women-dominant ROSCA

In: Economic Development, Integration, and Morality in Asia and the Americas

Author

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  • Kristiano Raccanello
  • Jayant Anand
  • Patricia Arroyo Martínez

Abstract

The literature on Rotating Savings and Credit Associations (ROSCAs), commonly known as tandas in Mexico, indicates a higher participation of women but generally fails to detect the reasons thereof. This chapter partially bridges the gap by considering the role of social capital in these organizations. The findings of this study show that socioeconomic factors, the gender of the member majority, and acceptance levels in the group influence the higher participation of women. However, access to formal credit markets does not influence this behavior. Moreover, trust in women-based groups and the benefits obtained from membership further contribute to higher participation of women. The participation of men in ROSCAs seems to be related to motivational factors that are different from those for women. For women, social capital is especially relevant for gender-based group formation.

Suggested Citation

  • Kristiano Raccanello & Jayant Anand & Patricia Arroyo Martínez, 2009. "Social capital as an incentive for participation and formation of women-dominant ROSCA," Research in Economic Anthropology, in: Economic Development, Integration, and Morality in Asia and the Americas, pages 407-429, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:reanzz:s0190-1281(2009)0000029017
    DOI: 10.1108/S0190-1281(2009)0000029017
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