Article,

Membership Has Its Privileges: The Effect of Social Capital and Neighbourhood Characteristics on the Earnings of Microfinance Borrowers

, and .
The Canadian Journal of Economics / Revue canadienne d'Economique, 34 (4): 943--966 (2001)

Abstract

In this paper we examine the determinants of self-employment success for microcredit borrowers. Theories of social capital and neighbourhood effects are integrated in an attempt to account for earnings differentials among a unique sample of microfinance borrowers. We posit that social capital - social relations that facilitate individual action - is essential for microentrepreneurial success. Based on a survey and data collected by the authors, it is demonstrated that social capital is a positive determinant of self-employment earnings. The role that neighbourhoods play in fostering social capital and improving microentrepreneurial performance are also highlighted. JEL classification: J23, O17, Z13

Tags

Users

  • @tciarli

Comments and Reviews