Managing Risk with Insurance and Savings : Experimental Evidence for Male and Female Farm Managers in the Sahel
Although there is fast-growing policy interest in offering financial products to help rural households manage risk, the literature is still scant as to which products are the most effective. This paper uses a randomized field experiment in Senegal and Burkina Faso to compare male and female farmers who are offered index-based agricultural insurance with those who are offered a variety of savings instruments. The paper finds that female farm managers were less likely to purchase agricultural insurance and more likely to invest in savings for emergencies, even controlling for access to informal insurance and differences in crop choice. It is hypothesized that this finding results from the fact that, although men and women are equally exposed to yield risk, women face additional sources of lifecycle risk -- particularly health risks associated with fertility and childcare -- that men do not. In essence, the basis risk associated with agricultural insurance products is higher for women. Purchasing insurance increased input spending and use more than savings. Those who purchased more insurance realized higher average yields and were better able to manage food insecurity and shocks. This finding suggests that gender differences in demand for financial products can have an impact on productivity, resilience, and welfare.
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dig-okr-10986213932024-08-08T13:32:09Z Managing Risk with Insurance and Savings : Experimental Evidence for Male and Female Farm Managers in the Sahel Delavallade, Clara Dizon, Felipe Vargas Hill, Ruth Petraud, Jean Paul AGRICULTURAL INCOMES AGRICULTURAL INPUTS AGRICULTURAL INSURANCE AGRICULTURAL OUTPUT AGRICULTURAL PRODUCTION AGRICULTURAL SHOCK AGRICULTURAL SHOCKS AGRICULTURAL YIELDS ARID TROPICS BARRIER BASIS RISK CASH PAYMENTS COMMODITY CROP INSURANCE DEVELOPING COUNTRIES DROUGHT DROUGHT RISK DROUGHTS ECONOMIC GROWTH ECONOMICS EMERGENCIES EXPOSURE EXPOSURE TO RISK FARM SELF-EMPLOYMENT FARMER FARMERS FARMLAND FEMALE FARMERS FERTILITY RATES FINANCIAL INSTRUMENT FINANCIAL INSTRUMENTS FINANCIAL PRODUCT FINANCIAL PRODUCTS FINANCIAL SERVICES FLOODS FOOD INSECURITY FOOD ITEMS FOOD POLICY FOOD SECURITY FOOD SHORTAGES GIFT EXCHANGE HEALTH INSURANCE HEALTH RISK HEALTH RISKS HEALTH STATUS HOUSEHOLD WELFARE IDIOSYNCRATIC SHOCKS INCOME INCOME RISK INCOMES INFORMAL INSURANCE INSURANCE INSURANCE COMPANIES INSURANCE CONTRACT INSURANCE CONTRACTS INSURANCE PRODUCT INSURANCE PRODUCTS INTEREST RATE INTEREST RATES INVESTMENT CHOICES INVESTMENT DECISION INVESTMENT OPPORTUNITIES LABOR ALLOCATION LIQUIDITY MALNUTRITION MARKET ACCESS MARKET PRICE MEDICINE MICROINSURANCE OUTPUT POOR POVERTY REDUCTION REPEATED SHOCKS RISK INSURANCE RISK MANAGEMENT RISK MITIGATION ROSCAS RURAL RURAL AREAS RURAL COMMUNITIES RURAL HOUSEHOLD RURAL HOUSEHOLDS SAVINGS SAVINGS ACCOUNT SAVINGS ACCOUNTS SAVINGS BEHAVIOR SAVINGS INSTRUMENT SAVINGS INSTRUMENTS SECURITY CONCERNS SLUMS SMALLHOLDER FARMERS SOCIAL SECURITY TYPES OF INSTRUMENTS Although there is fast-growing policy interest in offering financial products to help rural households manage risk, the literature is still scant as to which products are the most effective. This paper uses a randomized field experiment in Senegal and Burkina Faso to compare male and female farmers who are offered index-based agricultural insurance with those who are offered a variety of savings instruments. The paper finds that female farm managers were less likely to purchase agricultural insurance and more likely to invest in savings for emergencies, even controlling for access to informal insurance and differences in crop choice. It is hypothesized that this finding results from the fact that, although men and women are equally exposed to yield risk, women face additional sources of lifecycle risk -- particularly health risks associated with fertility and childcare -- that men do not. In essence, the basis risk associated with agricultural insurance products is higher for women. Purchasing insurance increased input spending and use more than savings. Those who purchased more insurance realized higher average yields and were better able to manage food insecurity and shocks. This finding suggests that gender differences in demand for financial products can have an impact on productivity, resilience, and welfare. 2015-02-03T16:24:59Z 2015-02-03T16:24:59Z 2015-01 http://documents.worldbank.org/curated/en/2015/01/23856332/managing-risk-insurance-savings-experimental-evidence-male-female-farm-managers-sahel https://hdl.handle.net/10986/21393 English en_US Policy Research Working Paper;No. 7176 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ application/pdf text/plain World Bank Group, Washington, DC |
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Banco Mundial |
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Estados Unidos |
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US |
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Bibliográfico |
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biblioteca |
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America del Norte |
| libraryname |
Biblioteca del Banco Mundial |
| language |
English en_US |
| topic |
AGRICULTURAL INCOMES AGRICULTURAL INPUTS AGRICULTURAL INSURANCE AGRICULTURAL OUTPUT AGRICULTURAL PRODUCTION AGRICULTURAL SHOCK AGRICULTURAL SHOCKS AGRICULTURAL YIELDS ARID TROPICS BARRIER BASIS RISK CASH PAYMENTS COMMODITY CROP INSURANCE DEVELOPING COUNTRIES DROUGHT DROUGHT RISK DROUGHTS ECONOMIC GROWTH ECONOMICS EMERGENCIES EXPOSURE EXPOSURE TO RISK FARM SELF-EMPLOYMENT FARMER FARMERS FARMLAND FEMALE FARMERS FERTILITY RATES FINANCIAL INSTRUMENT FINANCIAL INSTRUMENTS FINANCIAL PRODUCT FINANCIAL PRODUCTS FINANCIAL SERVICES FLOODS FOOD INSECURITY FOOD ITEMS FOOD POLICY FOOD SECURITY FOOD SHORTAGES GIFT EXCHANGE HEALTH INSURANCE HEALTH RISK HEALTH RISKS HEALTH STATUS HOUSEHOLD WELFARE IDIOSYNCRATIC SHOCKS INCOME INCOME RISK INCOMES INFORMAL INSURANCE INSURANCE INSURANCE COMPANIES INSURANCE CONTRACT INSURANCE CONTRACTS INSURANCE PRODUCT INSURANCE PRODUCTS INTEREST RATE INTEREST RATES INVESTMENT CHOICES INVESTMENT DECISION INVESTMENT OPPORTUNITIES LABOR ALLOCATION LIQUIDITY MALNUTRITION MARKET ACCESS MARKET PRICE MEDICINE MICROINSURANCE OUTPUT POOR POVERTY REDUCTION REPEATED SHOCKS RISK INSURANCE RISK MANAGEMENT RISK MITIGATION ROSCAS RURAL RURAL AREAS RURAL COMMUNITIES RURAL HOUSEHOLD RURAL HOUSEHOLDS SAVINGS SAVINGS ACCOUNT SAVINGS ACCOUNTS SAVINGS BEHAVIOR SAVINGS INSTRUMENT SAVINGS INSTRUMENTS SECURITY CONCERNS SLUMS SMALLHOLDER FARMERS SOCIAL SECURITY TYPES OF INSTRUMENTS AGRICULTURAL INCOMES AGRICULTURAL INPUTS AGRICULTURAL INSURANCE AGRICULTURAL OUTPUT AGRICULTURAL PRODUCTION AGRICULTURAL SHOCK AGRICULTURAL SHOCKS AGRICULTURAL YIELDS ARID TROPICS BARRIER BASIS RISK CASH PAYMENTS COMMODITY CROP INSURANCE DEVELOPING COUNTRIES DROUGHT DROUGHT RISK DROUGHTS ECONOMIC GROWTH ECONOMICS EMERGENCIES EXPOSURE EXPOSURE TO RISK FARM SELF-EMPLOYMENT FARMER FARMERS FARMLAND FEMALE FARMERS FERTILITY RATES FINANCIAL INSTRUMENT FINANCIAL INSTRUMENTS FINANCIAL PRODUCT FINANCIAL PRODUCTS FINANCIAL SERVICES FLOODS FOOD INSECURITY FOOD ITEMS FOOD POLICY FOOD SECURITY FOOD SHORTAGES GIFT EXCHANGE HEALTH INSURANCE HEALTH RISK HEALTH RISKS HEALTH STATUS HOUSEHOLD WELFARE IDIOSYNCRATIC SHOCKS INCOME INCOME RISK INCOMES INFORMAL INSURANCE INSURANCE INSURANCE COMPANIES INSURANCE CONTRACT INSURANCE CONTRACTS INSURANCE PRODUCT INSURANCE PRODUCTS INTEREST RATE INTEREST RATES INVESTMENT CHOICES INVESTMENT DECISION INVESTMENT OPPORTUNITIES LABOR ALLOCATION LIQUIDITY MALNUTRITION MARKET ACCESS MARKET PRICE MEDICINE MICROINSURANCE OUTPUT POOR POVERTY REDUCTION REPEATED SHOCKS RISK INSURANCE RISK MANAGEMENT RISK MITIGATION ROSCAS RURAL RURAL AREAS RURAL COMMUNITIES RURAL HOUSEHOLD RURAL HOUSEHOLDS SAVINGS SAVINGS ACCOUNT SAVINGS ACCOUNTS SAVINGS BEHAVIOR SAVINGS INSTRUMENT SAVINGS INSTRUMENTS SECURITY CONCERNS SLUMS SMALLHOLDER FARMERS SOCIAL SECURITY TYPES OF INSTRUMENTS |
| spellingShingle |
AGRICULTURAL INCOMES AGRICULTURAL INPUTS AGRICULTURAL INSURANCE AGRICULTURAL OUTPUT AGRICULTURAL PRODUCTION AGRICULTURAL SHOCK AGRICULTURAL SHOCKS AGRICULTURAL YIELDS ARID TROPICS BARRIER BASIS RISK CASH PAYMENTS COMMODITY CROP INSURANCE DEVELOPING COUNTRIES DROUGHT DROUGHT RISK DROUGHTS ECONOMIC GROWTH ECONOMICS EMERGENCIES EXPOSURE EXPOSURE TO RISK FARM SELF-EMPLOYMENT FARMER FARMERS FARMLAND FEMALE FARMERS FERTILITY RATES FINANCIAL INSTRUMENT FINANCIAL INSTRUMENTS FINANCIAL PRODUCT FINANCIAL PRODUCTS FINANCIAL SERVICES FLOODS FOOD INSECURITY FOOD ITEMS FOOD POLICY FOOD SECURITY FOOD SHORTAGES GIFT EXCHANGE HEALTH INSURANCE HEALTH RISK HEALTH RISKS HEALTH STATUS HOUSEHOLD WELFARE IDIOSYNCRATIC SHOCKS INCOME INCOME RISK INCOMES INFORMAL INSURANCE INSURANCE INSURANCE COMPANIES INSURANCE CONTRACT INSURANCE CONTRACTS INSURANCE PRODUCT INSURANCE PRODUCTS INTEREST RATE INTEREST RATES INVESTMENT CHOICES INVESTMENT DECISION INVESTMENT OPPORTUNITIES LABOR ALLOCATION LIQUIDITY MALNUTRITION MARKET ACCESS MARKET PRICE MEDICINE MICROINSURANCE OUTPUT POOR POVERTY REDUCTION REPEATED SHOCKS RISK INSURANCE RISK MANAGEMENT RISK MITIGATION ROSCAS RURAL RURAL AREAS RURAL COMMUNITIES RURAL HOUSEHOLD RURAL HOUSEHOLDS SAVINGS SAVINGS ACCOUNT SAVINGS ACCOUNTS SAVINGS BEHAVIOR SAVINGS INSTRUMENT SAVINGS INSTRUMENTS SECURITY CONCERNS SLUMS SMALLHOLDER FARMERS SOCIAL SECURITY TYPES OF INSTRUMENTS AGRICULTURAL INCOMES AGRICULTURAL INPUTS AGRICULTURAL INSURANCE AGRICULTURAL OUTPUT AGRICULTURAL PRODUCTION AGRICULTURAL SHOCK AGRICULTURAL SHOCKS AGRICULTURAL YIELDS ARID TROPICS BARRIER BASIS RISK CASH PAYMENTS COMMODITY CROP INSURANCE DEVELOPING COUNTRIES DROUGHT DROUGHT RISK DROUGHTS ECONOMIC GROWTH ECONOMICS EMERGENCIES EXPOSURE EXPOSURE TO RISK FARM SELF-EMPLOYMENT FARMER FARMERS FARMLAND FEMALE FARMERS FERTILITY RATES FINANCIAL INSTRUMENT FINANCIAL INSTRUMENTS FINANCIAL PRODUCT FINANCIAL PRODUCTS FINANCIAL SERVICES FLOODS FOOD INSECURITY FOOD ITEMS FOOD POLICY FOOD SECURITY FOOD SHORTAGES GIFT EXCHANGE HEALTH INSURANCE HEALTH RISK HEALTH RISKS HEALTH STATUS HOUSEHOLD WELFARE IDIOSYNCRATIC SHOCKS INCOME INCOME RISK INCOMES INFORMAL INSURANCE INSURANCE INSURANCE COMPANIES INSURANCE CONTRACT INSURANCE CONTRACTS INSURANCE PRODUCT INSURANCE PRODUCTS INTEREST RATE INTEREST RATES INVESTMENT CHOICES INVESTMENT DECISION INVESTMENT OPPORTUNITIES LABOR ALLOCATION LIQUIDITY MALNUTRITION MARKET ACCESS MARKET PRICE MEDICINE MICROINSURANCE OUTPUT POOR POVERTY REDUCTION REPEATED SHOCKS RISK INSURANCE RISK MANAGEMENT RISK MITIGATION ROSCAS RURAL RURAL AREAS RURAL COMMUNITIES RURAL HOUSEHOLD RURAL HOUSEHOLDS SAVINGS SAVINGS ACCOUNT SAVINGS ACCOUNTS SAVINGS BEHAVIOR SAVINGS INSTRUMENT SAVINGS INSTRUMENTS SECURITY CONCERNS SLUMS SMALLHOLDER FARMERS SOCIAL SECURITY TYPES OF INSTRUMENTS Delavallade, Clara Dizon, Felipe Vargas Hill, Ruth Petraud, Jean Paul Managing Risk with Insurance and Savings : Experimental Evidence for Male and Female Farm Managers in the Sahel |
| description |
Although there is fast-growing policy
interest in offering financial products to help rural
households manage risk, the literature is still scant as to
which products are the most effective. This paper uses a
randomized field experiment in Senegal and Burkina Faso to
compare male and female farmers who are offered index-based
agricultural insurance with those who are offered a variety
of savings instruments. The paper finds that female farm
managers were less likely to purchase agricultural insurance
and more likely to invest in savings for emergencies, even
controlling for access to informal insurance and differences
in crop choice. It is hypothesized that this finding results
from the fact that, although men and women are equally
exposed to yield risk, women face additional sources of
lifecycle risk -- particularly health risks associated with
fertility and childcare -- that men do not. In essence, the
basis risk associated with agricultural insurance products
is higher for women. Purchasing insurance increased input
spending and use more than savings. Those who purchased more
insurance realized higher average yields and were better
able to manage food insecurity and shocks. This finding
suggests that gender differences in demand for financial
products can have an impact on productivity, resilience, and welfare. |
| topic_facet |
AGRICULTURAL INCOMES AGRICULTURAL INPUTS AGRICULTURAL INSURANCE AGRICULTURAL OUTPUT AGRICULTURAL PRODUCTION AGRICULTURAL SHOCK AGRICULTURAL SHOCKS AGRICULTURAL YIELDS ARID TROPICS BARRIER BASIS RISK CASH PAYMENTS COMMODITY CROP INSURANCE DEVELOPING COUNTRIES DROUGHT DROUGHT RISK DROUGHTS ECONOMIC GROWTH ECONOMICS EMERGENCIES EXPOSURE EXPOSURE TO RISK FARM SELF-EMPLOYMENT FARMER FARMERS FARMLAND FEMALE FARMERS FERTILITY RATES FINANCIAL INSTRUMENT FINANCIAL INSTRUMENTS FINANCIAL PRODUCT FINANCIAL PRODUCTS FINANCIAL SERVICES FLOODS FOOD INSECURITY FOOD ITEMS FOOD POLICY FOOD SECURITY FOOD SHORTAGES GIFT EXCHANGE HEALTH INSURANCE HEALTH RISK HEALTH RISKS HEALTH STATUS HOUSEHOLD WELFARE IDIOSYNCRATIC SHOCKS INCOME INCOME RISK INCOMES INFORMAL INSURANCE INSURANCE INSURANCE COMPANIES INSURANCE CONTRACT INSURANCE CONTRACTS INSURANCE PRODUCT INSURANCE PRODUCTS INTEREST RATE INTEREST RATES INVESTMENT CHOICES INVESTMENT DECISION INVESTMENT OPPORTUNITIES LABOR ALLOCATION LIQUIDITY MALNUTRITION MARKET ACCESS MARKET PRICE MEDICINE MICROINSURANCE OUTPUT POOR POVERTY REDUCTION REPEATED SHOCKS RISK INSURANCE RISK MANAGEMENT RISK MITIGATION ROSCAS RURAL RURAL AREAS RURAL COMMUNITIES RURAL HOUSEHOLD RURAL HOUSEHOLDS SAVINGS SAVINGS ACCOUNT SAVINGS ACCOUNTS SAVINGS BEHAVIOR SAVINGS INSTRUMENT SAVINGS INSTRUMENTS SECURITY CONCERNS SLUMS SMALLHOLDER FARMERS SOCIAL SECURITY TYPES OF INSTRUMENTS |
| author |
Delavallade, Clara Dizon, Felipe Vargas Hill, Ruth Petraud, Jean Paul |
| author_facet |
Delavallade, Clara Dizon, Felipe Vargas Hill, Ruth Petraud, Jean Paul |
| author_sort |
Delavallade, Clara |
| title |
Managing Risk with Insurance and Savings : Experimental Evidence for Male and Female Farm Managers in the Sahel |
| title_short |
Managing Risk with Insurance and Savings : Experimental Evidence for Male and Female Farm Managers in the Sahel |
| title_full |
Managing Risk with Insurance and Savings : Experimental Evidence for Male and Female Farm Managers in the Sahel |
| title_fullStr |
Managing Risk with Insurance and Savings : Experimental Evidence for Male and Female Farm Managers in the Sahel |
| title_full_unstemmed |
Managing Risk with Insurance and Savings : Experimental Evidence for Male and Female Farm Managers in the Sahel |
| title_sort |
managing risk with insurance and savings : experimental evidence for male and female farm managers in the sahel |
| publisher |
World Bank Group, Washington, DC |
| publishDate |
2015-01 |
| url |
http://documents.worldbank.org/curated/en/2015/01/23856332/managing-risk-insurance-savings-experimental-evidence-male-female-farm-managers-sahel https://hdl.handle.net/10986/21393 |
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