Work

Are Women More Credit Constrained? Experimental Evidence On Gender And Microenterprise Returns

Year: 2008

Type: article

Abstract: We report on a field experiment providing random grants to microenterprise owners. The grants generated large profit increases for male owners but not for female owners. We show that the gender gap does not simply mask differences in ability, risk aversion, entrepreneurial attitudes, or differences in reporting behavior, but there is some evidence that the gender gap is larger in female-dominated industries. The data are not consistent with a unitary household model, and imply an inefficiency of resource allocation within households. We show evidence that this inefficiency is reduced in more cooperative households. (JEL D13, D14, J16, L25, L26, O12, O16)

Source: American Economic Journal Applied Economics

DOI: 10.1257/app.1.3.1

Authors: Suresh de Mel, David McKenzie, Christopher Woodruff

Institutions: University of Peradeniya, World Bank, IZA - Institute of Labor Economics, World Bank Group, University of California San Diego

Language: English

Topic: Microfinance and Financial Inclusion

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Gender equality, Reduced inequalities, No poverty, Decent work and economic growth

Open Access status: green

Funder: National Science Foundation