English, Article, Journal or magazine article edition: Discrimination in Microfinance: The Role of Credit Officers Marc Labie; Pierre-Guillaume Méon; Ariane Szafarz

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Bookmark: http://trove.nla.gov.au/version/110774
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Discrimination in Microfinance: The Role of Credit Officers
Author
  • Marc Labie
  • Pierre-Guillaume Méon
  • Ariane Szafarz
Physical Description
  • preprint
Notes
  • This paper studies how high-powered incentives may affect credit officers’ discriminatory practices in microfinance institutions. Using an agency model applied to a non-profit MFI, we argue that incentive contracts may help align the officer’s behavior with the MFI’s mission. However, since incentives are costly, and the MFI’s budget is limited, even a benevolent institution faces a trade-off between fighting discrimination and raising outreach. Welfare maximization may not imply full eradication of discriminatory practices. A non discriminating welfare-maximizing MFI may thus prefer paying smaller incentives, and letting its credit officer discriminate to some extent.
  • Microfinance, Discrimination, Credit Officers, Incentives.
  • RePEc:sol:wpaper:09-017
Language
  • English
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