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Coping with shocks: How Self-Help Groups impact food security and seasonal migration

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  • Timothée Demont

    (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

Abstract
Combining seven years of household data from an original eld experiment in villages of Jharkand, East India, with meteorological data, this paper investigates how Indian Self-Help Groups (SHGs) enable households to withstand rainfall shocks. I show that SHGs operate remarkably well under large covariate shocks. While credit access dries up in control villages one year after a bad monsoon, reecting strong credit rationing from informal lenders, credit ows are counter-cyclical in treated villages. Treated households experience substantially higher food security during the lean season following a drought and increase their seasonal migration to mitigate expected income shocks. Credit access plays an important role, together with other SHG aspects such as peer networks. These ndings indicate that local self-help and nancial associations can help poor farmers to cope with climatic shocks and to implement risk management strategies.

Suggested Citation

  • Timothée Demont, 2022. "Coping with shocks: How Self-Help Groups impact food security and seasonal migration," Post-Print hal-03882344, HAL.
  • Handle: RePEc:hal:journl:hal-03882344
    DOI: 10.1016/j.worlddev.2022.105892
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    More about this item

    Keywords

    Micronance; credit; climatic shocks; risk management; resilience; seasonal migration; food security;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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