The role of wealth, income, and social capital in determining a household’s choice to participate in rural water-supply projects in Peru

Abstract

We explore the determinants of a household’s choice to participate in rural water-supply projects in the Cuzco Department of Peru. Using survey data collected from over 1500 households in 99 villages, we present fixed-effects and random-effects models that explain a household’s decision to participate in two ways—through meeting attendance and through involvement in decision making. We find that income and wealth impact the decision to participate in different ways. Households with more wealth, measured by ownership of assets, were more likely to attend meetings but were less likely to have a voice in decision making. In terms of income, we find that middle-class households had more input into decision making than lower-income households. Household-level measures of social capital positively affected participation both in terms of attending meetings and in the number of decisions in which households were involved.