Influence of Microfinance and Empowerment on Satisfaction: Case Study of Pakistan


Kausar Yasmeen , Naif Mutlaq J Alruways , Swadhin Mondal


involvement, and loan size on women satisfaction. To achieve the objectives through simple
random sampling technique the cross-sectional was collected from 372 borrowers’ and 372 nonborrowers’
women’s through questionnaire and later multinomial logistic regression was applied.
The findings revealed and support the theory of adoption, which demonstrates that income
increases satisfaction. Microfinance is a kind of money, which involves borrowers in small
business and enables them to have money through doing businesses that increase borrowers’
women satisfaction compare to non-borrower’s women. More empowered women is more
satisfied with life. Present study also found that the effect of microfinance involvement on
women’s satisfaction depends on their empowerment In the light of findings this study
recommends that future researchers can examine the same model in the different culture. This
study contributes theoretically, practically and politically.



Women empowerment
Economic activities

Abdel-Khalek, A. M. and Korayem, A. S. (2018). The Relationship between Happiness, Income, and Unemployment Rate in Arab and Western Countries. Mankind Quarterly, 59(2), 242-254.
Akhtar, M. S., Ayub, A. and Anwar, M. S. M. (2019). An Analytical Study on Women’s Empowerment Regarding Decision Making: A Case Study of Pakistan. The Government- Annual Research Journal of Political Science, 7(7).
Aknin, L. B., Wiwad, D. and Hanniball, K. B. (2018). Buying well‐being: Spending behavior and
happiness. Social and Personality Psychology Compass, 12(5), e12386.
Ali, S. M. and U Haq, R. (2006). Women's autonomy and happiness: the case of Pakistan. The
Pakistan Development Review, 121-136.
Amendola, A., Dell’Anno, R. and Parisi, L. (2018). Happiness and inequality in
European countries: is it a matter of peer group comparisons? Economia Politica, 1-36.
Antinyan, A., Horvath, G. and Jia, M. (2019). Social status competition and the impact of income
inequality in evolving social networks: An agent-based model. Journal of Behavioral and
Experimental Economics.
Asim, S. (2009). Evaluating the impact of microcredit on women's empowerment in Pakistan.
Bandyopadhyay. (2011). Microfinance in improvement of living standard and GNH” Assets
Reconstruction Company (India) Limited, India.
Banerjee, A. V., Breza, E., Duflo, E. and Kinnan, C. (2017). Do credit constraints limit
entrepreneurship? Heterogeneity in the returns to microfinance.
Barrington-Leigh, C. and Galbraith, E. (2019). Feasible future global scenarios for human life
evaluations. Nature communications, 10(1), 161.
Becchetti (2009). Microfinance and happiness, Working Paper No.69, Gennaio 2010
Becchetti and Pierluigi Conzo, (2013).Credit access and life satisfaction: evaluating the
nonmonetary effects of micro finance, Journal of Applied Economics, Volume 45, Issue 9,
Becchetti, L., Castriota, S. and Conzo, P. (2017). Disaster, Aid, and Preferences: The Long-run
Impact of the Tsunami on Giving in Sri Lanka. World Development, 94, 157-173.
Bukhari, M. A. H. S., Gaho, M. G. M. and Soomro, M. K. H. (2019). Gender Inequality: Problems and
Its Solutions in Pakistan. The Government-Annual Research Journal of Political Science,
Chae, J. (2018). Reexamining the relationship between social media and happiness: The effects of
various social media platforms on re-conceptualized happiness. Telematics and Informatics.
Clark, A. E., Senik, C. and Yamada, K. (2017). When Experienced and Decision Utility Concur: The
case of income comparisons. Journal of Behavioral and Experimental Economics, 70,
Devaraiah, D. B., Basha, K. and Thirumalesha Babu, T. R (2013). Origin of Micro Finance and
Women Empowerment in Bangladesh. Human Rights International Research Journal: ISSN,
Dolan, P. and Fujiwara, D. (2016). Happiness-based policy analysis. In The Oxford Handbook of
Well-Being and Public Policy.
Easterlin, R. A., McVey, L. A., Switek, M., Sawangfa, O. and Zweig, J. S. (2010). The happiness–
income paradox revisited. Proceedings of the National Academy of Sciences, 201015962.
Fanning, A. L. and O'Neill, D. W. (2019). The Wellbeing–Consumption paradox: Happiness,
health, income, and carbon emissions in growing versus non-growing economies. Journal
of Cleaner Production, 212, 810-821.
Ferdous, N., Kabir, R., Khan, H. T., and Chowdhury, M. R. K. (2017). Exploring the relationship
of Domestic violence on Health Seeking behavior and Empowerment of Women in
Pakistan. Epidemiology, biostatistics and public health, 14(1).
Gere, J. and Schimmack, U. (2017). Benefits of income: Associations with life satisfaction among
earners and homemakers. Personality and Individual Differences, 119, 92-95.
Han, H., Jung, Y. M. and Xiong, X. (2019). Life Satisfaction and Quality of Life. In The Ageing
of Australian Ethnic Minorities (pp. 89-99). Palgrave Pivot, Singapore.
Harisree, H. G. (2019). Women Victims of The Code: A Study of Bapsi Sidhwa’s The Pakistani
Bride. IJELLH (International Journal of English Language, Literature in Humanities), 7(1),
Hassan, A. and Saleem, S. (2017). An Islamic microfinance business model in Bangladesh: Its role
in alleviation of poverty and socio-economic well-being of women. Humanomics, 33(1),
Hastings, O. P. (2019). Who Feels It? Income Inequality, Relative Deprivation, and Financial
Satisfaction in US States, 1973–2012. Research in Social Stratification and Mobility.
Hedeker, D. (2003). A mixed‐effects multinomial logistic regression model. Statistics in
medicine, 22(9), 1433-1446.
Hill, P. L., Cheung, F., Kube, A. and Burrow, A. L. (2019). Life engagement is associated with
higher GDP among societies. Journal of Research in Personality, 78, 210-214.
Huang, Y., Chu, R. and Cheng, J. (2019). Exploring Life Satisfaction Among Subsistence Migrant
Consumers: A Case in China. Journal of Public Policy and Marketing.
Islam, S. R., Perumal, S. and Hussin, Z. (2017). Relational norms, happiness and customer
satisfaction in Micro Finance Institution’s (MFI’s): A Conceptual framework. Journal of
Advanced Research in Business and Management Studies, 9(1), 1-9.
Jachimowicz, J., Frey, E., Matz, S., Jeronimus, B. F. and Galinsky, A. (2019). Financial Scarcity
is Linked to Higher Negative Affect Variability and Reduced Well-Being.
Jacob, A., Rothmann, S. and Stander, M. W. (2019). Do wage and wage satisfaction compensate
for the effects of a dissatisfying job on life satisfaction?. SA Journal of Industrial
Psychology, 45, 11.
Kelley, J. and Evans, M. D. R. (2017). The new income inequality and well-being paradigm:
Inequality has no effect on happiness in rich nations and normal times, varied effects in
extraordinary circumstances, increases happiness in poor nations, and interacts with
individuals' perceptions, attitudes, politics, and expectations for the future. Social Science
Research, 62, 39-74.
Khan, M. T., Zaheer, S. and Shafique, K. (2017). Maternal education, empowerment, economic
status and child polio vaccination uptake in Pakistan: a population based cross sectional
study. BMJ open, 7(3), e013853.
Kislev, E. (2018). Happiness, Post-materialist Values, and the Unmarried. Journal of Happiness
Studies, 19(8), 2243-2265.
Li, L. and Shi, L. (2019). Economic growth and subjective well-being: analyzing the formative
mechanism of Easterlin Paradox. The Journal of Chinese Sociology, 6(1), 1.
Lybbert, T. J. and Wydick, B. (2017). Hope as aspirations, agency, and pathways: poverty
dynamics and microfinance in Oaxaca, Mexico. In The Economics of Poverty Traps.
University of Chicago Press.
Maddala, G. S. (1983). Limited dependent and qualitative variables in econometrics. Cambridge:
Cambridge Univ. Press.
Malhotra, A., Schuler, S. R., and Boender, C. (2002). Measuring women's empowerment as a
variable in international development, background paper prepared for the World Bank
workshop on poverty and gender: New perspectives, June 28, 2002.
McFadden, D. 1984. Econometric analysis of qualitative response models. In Hand-book of
econometrics, ed. Z. Griliches and M. Intriligator, 2:1395-1457. Amster-dam: North-
McFadden, D. and Train, K. (2000). Mixed MNL models for discrete response. Journal of applied
Econometrics, 15(5), 447-470.
Memon, M. F. A. and Idris, N. (2019). Women Empowerment and Its Role in Pakistan Politics (A
Case Study of Sindh). The Government-Annual Research Journal of Political Science, 7(7).
Michael Pennock. (2006).The Gross National Happiness Abridged Survey, Population Health
Epidemiologist, Vancouver Island Health Authority, Victoria, BC. Canada
Mitroi, L. R., Sahak, M., Sherzai, A. Z. and Sherzai, D. (2016). The women's health care
empowerment model as a catalyst for change in developing countries. Health care for
women international, 37(3), 275-289.
Mukhuti, S., Mukhuti, A. and Chakraborty, S. (2019). Development and Growth of Women
Empowerment of Selected Indicators in West Bengal-An Empirical Study. IJAME, 113-
Murshid, N. S. and Critelli, F. M. (2017). Empowerment and intimate partner violence in Pakistan:
results from a nationally representative survey. Journal of interpersonal violence,
Ng, W. and Diener, E. (2018). Affluence and Subjective Well-Being: Does Income Inequality
Moderate their Associations? Applied Research in Quality of Life, 1-16.
Nwokoro, C. V. and Ogba, F. (2019, January). Widows: Moving from vulnerability to
empowerment in Southeast Nigeria. In Women's Studies International Forum (Vol. 72, pp.
Okulicz-Kozaryn, A. and Golden, L. (2018). Happiness is flextime. Applied Research in Quality
of Life, 13(2), 355-369.
Pasha, Hafiz A. and T. Palanivel (2003) 'Macroeconomics of Poverty Reduction: An Analysis of
the Experience in 11 Asian Countries', Discussion Paper No. 3 UNDP Asia-Pacific Regional
Programme on Macroeconomics of Poverty Reduction.
Rukumnuaykit, P. and Pholphirul, P. (2016). Happiness from social capital: An investigation from
micro data in rural Thailand. Community Development, 47(4), 562-573.
Sathar, Zeba A. and Shahnaz Kazi (1997) Women's Autonomy, Livelihood and Fertility; A study
of rural Punjab, Islamabad: PIDE.
Selten, R. (1998). Aspiration adaptation theory. Journal of mathematical psychology, 42(2), 191-
Shabbir, A. and Di Gregorio, S. (1996). An examination of the relationship between women's
personal goals and structural factors influencing their decision to start a business: The case
of Pakistan. Journal of Business Venturing, 11(6), 507-529.
Shetty, A. J. K. and Vasanthi, M. K. (2019). Entrepreneurship Development Paves Way for
Women Empowerment. Social Science and Humanities Journal, 809-814.
Tasquran (2011). Women’s empowerment in Bangladesh (Doctoral dissertation, University Utara
Ul-Hameed, W., Mohammad, H. and Shahar, H. (2018). Microfinance institute’s non-financial
services and women-empowerment: The role of vulnerability. Management Science
Letters, 8(10), 1103-1116.
Wang, H., Cheng, Z. and Smyth, R. (2019). Consumption and happiness. The Journal of
Development Studies, 55(1), 120-136.
Yasmeen, K. (2015). The impact of microfinance loan on women’s empowerment and happiness
in Pakistan (Doctoral dissertation, Universiti Utara Malaysia).
Zahra, S. A. and Wright, M. (2016). Understanding the social role of entrepreneurship. Journal of
Management Studies, 53(4), 610-629.
Zakar, R., Zakar, M. Z. and Abbas, S. (2016). Domestic violence against rural women in Pakistan:
an issue of health and human rights. Journal of family violence, 31(1), 15-25.
Zia, A. S. (2019). Can Rescue Narratives Save Lives? Honor Killing in Pakistan. Signs: Journal
of Women in Culture and Society, 44(2), 355-378.