Participation in Self-Help Group Activities and its Impacts: Evidence from South India

Institution building is now recognized as vital for poverty reduction across the world. This paper focuses on the determinants of participation in Self-Help Groups and impacts on household welfare. The participation in SHG activities are influenced by various household level and contextual factors. Our results support that the public policies geared towards increasing women’s participation in SHGs generate substantial income and have significance in household welfare. The quantity and quality of food consumed, the health of household members, and children’s education have improved. Thus, the institution building contributes greatly to improving household welfare. Therefore, continuing public support for the expansion of these SHGs appears crucial to achieve poverty reduction.