Ladies and Gentlemen, Microfinance Needs to Consider your Different Social, Risk and Time Preferences: An Experimental Study in Rural Egypt

Microfinance has been identified by many as a useful tool in aiding economic development, even though the actual impact on poverty is still a matter of debate. Women empowerment is a preset objective of many microfinance institutions. Yet, even without targeting women, certain types and characteristics of microfinance loans are not appealing for men. This study investigates the effect of gender preferences on the choice of microfinance. As gender differences exist with respect to risk, time, social preferences as well as competitiveness, the implications of such dissimilarities are particularly crucial when designing financial and social protection policies. Consequently, the project suggests a mechanism to incorporate these differences in the design of the microfinance (and other financial policies that target the poor).