Essays on Institutions and Development

I study how institutions shape access to public services and financial inclusion, particularly for marginalized populations. The three chapters of this dissertation examine the roles of religious organizations, formal financial systems, and local democratic institutions, in determining the supply of, and participation in public services.

In the first chapter, I evaluate how decentralized religious organizations influence the government’s public service delivery patterns. I focus on village-level religious centers led by influential leaders in Punjab, India. These centers often act as informal support structures in rural areas, especially where state capacity is limited. I leverage historical patterns in the spread of religious sects to construct an instrumental variable and isolate the causal impact of these centers on the presence of village-level government services. Areas with these religious institutions receive a higher number of public services, particularly in education and health, which are managed at midlevels of governance. Surveys with local village council members suggest that these leaders help coordinate programs, contribute resources, and advocate for community needs. This study emphasizes that while these organizations can enhance service delivery, their engagement with the state introduces important questions about accountability and the social costs of these types of informal institutions.

In the second chapter, I shift focus to a high-income context to examine how institutional barriers shape the experience of financial inclusion. I study Canada’s bankruptcy system to evaluate why many low-income individuals, despite being eligible for debt relief, delay or forgo filing for insolvency. Although bankruptcy is intended to provide a financial reset, high filing costs, complicated administrative procedures, and stigma potentially discourage access. I implement a randomized evaluation that lowers the financial barrier to filing and observe how participants respond. The intervention leads to an increase in filing, demonstrating how even in functioning markets, institutional frictions can block access to essential services for economically vulnerable populations.

In the third chapter, I return to the rural Indian context to explore the limitations of decentralized governance in practice, with a focus on women’s political participation in local village councils. Although constitutional mandates guarantee representation for women, many elected female representatives struggle to exercise authority due to entrenched social norms, lack of formal training, and institutional discrimination. Drawing on primary survey data from village councils, I show suggestive evidence that while some women actively participate in local decision-making, many feel excluded or undermined by male colleagues and community members. Further, there is widespread proxy-representation where male family members, especially spouses, unofficially hold authority. Based on these findings, I design policy interventions that offer leadership training and support networks aimed at strengthening women’s effective participation in governance.