Consider two villages. Village 1 has ten households, all of which have access to a microfinance program. All we know about these households is the following:

In addition to having access to a microfinance program, these ten households enjoy a government grant which targets children’s education.
The grant enables each household to send one child to school.
Now consider village 2. In this village there are twelve households that don’t have access to a microfinance program and do not benefit from a government grant for sending their children to school. The characteristics of these villagers are as follows:

Compute in percentage terms the level of education in the two villages.
Then attempt to measure the effect of microfinance on children’s education.
Can you conclude that microfinance has a positive impact on children’s education?

Transcribed Image Text:

Number of children going to school Number of children 3 5 4 00 3 43210 mm 63510 Household 1 2 3 4 5 10 7 10 5 4 3 678 6489 10