Rural-Urban Pay Difference in the Microfinance Industry: Evidence from Developing Countries
Summary. Microfinance institutions across 111 developing countries pay employees significantly more in urban areas than rural areas. The wage gap stems from agglomeration effects, higher urban living costs, and greater urban productivity. Larger and financially stable MFIs pay higher wages regardless of location. The findings suggest policymakers should intervene to address rural-urban pay disparities and help MFIs retain talent in underserved areas.
Cite this article
Mia, M. A., & Pellegrina, L. D.. (2025). Rural-Urban Pay Difference in the Microfinance Industry: Evidence from Developing Countries. Journal of Alternative Finance. https://doi.org/10.1177/27533743251331133
Mia, Md Aslam, and Lucia Dalla Pellegrina. “Rural-Urban Pay Difference in the Microfinance Industry: Evidence from Developing Countries.” Journal of Alternative Finance, 2025. https://doi.org/10.1177/27533743251331133.
Mia, Md Aslam, and Lucia Dalla Pellegrina. 2025. “Rural-Urban Pay Difference in the Microfinance Industry: Evidence from Developing Countries.” Journal of Alternative Finance. https://doi.org/10.1177/27533743251331133.
@article{mia-2025-rural-urban-pay-difference-microfinance,
title = {Rural-Urban Pay Difference in the Microfinance Industry: Evidence from Developing Countries},
author = {Md Aslam Mia and Lucia Dalla Pellegrina},
journal = {Journal of Alternative Finance},
year = {2025},
doi = {10.1177/27533743251331133},
url = {https://doi.org/10.1177/27533743251331133}
}
TY - JOUR TI - Rural-Urban Pay Difference in the Microfinance Industry: Evidence from Developing Countries AU - Md Aslam Mia AU - Lucia Dalla Pellegrina JO - Journal of Alternative Finance PY - 2025 DO - 10.1177/27533743251331133 UR - https://doi.org/10.1177/27533743251331133 ER -
Details
- DOI
- 10.1177/27533743251331133
- Countries
- Malaysia, Italy
- Regions
- Asia, Europe
- Categories
- funding, regional-innovation-systems
- Added
- 2026-04-28