The Role of Credit in Women's Employment: The Case of Women's Cooperatives in Iran

Since 1980s, credit policy has been promoted as an important mechanism in job creation, especially for women. However, some researchers have showed that although microfinance programs have significant potential for contributing to women’s wellbeing, yet, many women borrowers have limited control over loans and/or resulted income. In such cases credit policy may not change women status. Women’s Cooperatives are one of the institutional set up for mitigating female unemployment and promoting women’s position in the society and household. However, in most cases, cooperatives that established by the help of state subsidies may not realize the expected goals. Our field research about Women’s Cooperatives in Mazandaran province (Iran) confirms that there is no automatic benefit of micro-finance for women; as many registered Women’s Cooperatives have not been able to create long lasting economic activity, despite of receiving loans.