A Firm of One's Own : Experimental Evidence on Credit Constraints and Occupational Choice
This study presents results from a randomized evaluation of two labor market interventions targeted to young women aged 18 to 19 years in three of Nairobi's poorest neighborhoods. One treatment offered participants a bundled intervention desig...
| Main Authors: | , , , |
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| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/428361487270218330/A-firm-of-ones-own-experimental-evidence-on-credit-constraints-and-occupational-choice http://hdl.handle.net/10986/26144 |
| Summary: | This study presents results from a
randomized evaluation of two labor market interventions
targeted to young women aged 18 to 19 years in three of
Nairobi's poorest neighborhoods. One treatment offered
participants a bundled intervention designed to
simultaneously relieve credit and human capital constraints;
a second treatment provided women with an unrestricted cash
grant, but no training or other support. Both interventions
had economically large and statistically significant impacts
on income over the medium term (7 to 10 months after the end
of the interventions), but these impacts dissipated in the
second year after treatment. The results are consistent with
a model in which savings constraints prevent women from
smoothing consumption after receiving large transfers --
even in the absence of credit constraints, and when
participants have no intention of remaining in
entrepreneurship. The study also shows that participants
hold remarkably accurate beliefs about the impacts of the
treatments on occupational choice |
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