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Who borrows to accumulate assets? Class, gender and indebtedness in Ecuador’s credit market



This article examines the propositions that wealth inequality supports credit market segmentation and that the financial system may reproduce economic inequality. Specifically, we discuss how the sources of credit and the purposes of borrowing may help perpetuate inequality. In Ecuador, the asset-poor are more likely than the asset-rich to borrow from the informal sector for expense purposes and to have higher debt-to-net-wealth ratios. We also investigate the correlates of borrowing by men and women to acquire assets and show that the main factor associated with holding asset debt for both men and women is having a formal savings account.

Comisión Económica para América Latina y el Caribe (CEPAL) - Biblioteca Hernán Santa Cruz

Mirian Ramirez

Biblioteca CEPAL, Edificio Naciones Unidas, Av. Dag Hammarskjold 3477, Santiago, Chile

(+56-2) 2210-2337

Address: Av. Mariscal Antonio José de Sucre N58-63 y Fernández Salvador Edif. Olade - San Carlos, Quito - Ecuador.

Web: www.olade.org

Phone: (593 2) 259 8122 / 2598 280
Desarrollado por: Aikyu-Systems