The Impact of Microfinance on Contraceptive Use in Indonesia

Abstract

The purpose of this research is to analyze the impact of microfinance on contraceptive use in Indonesia by using IFLS (Indonesian Family Life Surveys) data of 2000 and 2007. The method used in this research is Fixed-Effect technique of individuals and communities, Instrumental Variables techniques, and Probit models. The result of this research showed that variable microfinance has positive and significant effect on the community level fixed-effect for variable outcomes current contraceptive use. Then for variable not want any more children, all have positive and significant impact of all methods, this meaning that the probability of contraceptive use for women who have no desire to add a child is higher than women who do not have the desire to not add the child.