Méon, Pierre-Guillaume; Szafarz, Ariane; Labie, Marc - Centre Emile Bernheim, Solvay Brussels School of … - 2009
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,...