Measuring the Impact of Microfinance on Child Health Outcomes in Indonesia

Microfinance has become a staple of modern development policy as a means to facilitate anything from gender equality to growth. It can facilitate the sharing of health-related information among parents, promote the bargaining power of women in the household, aid in the development of important health-related infrastructure, and help households smooth consumption in the wake of unexpected economic shocks. Using data from the Indonesian Family Life Survey (1993-2000), we find that the presence of microfinance institutions in communities significantly improves the health of children.