Credit access, human capital and class structure mobility
AbstractThis article examines the impact of microenterprise credit programmes on class structure mobility in developing countries. It develops a model that endogenously generates an eight-fold class structure. Class membership is determined by optimal choice of labour activity, which is a function of access to credit and human capital endowments. Predictions from the model suggest that better access to credit will foster upward class mobility among self-employed entrepreneurs, and that this upward class mobility will be accentuated among entrepreneurs with high levels of human capital. Theoretical predictions from the model are compared with data on class structure mobility collected first-hand in western Guatemala. Empirical results show that upward class structure mobility increases substantially with access to credit, and also suggest that the combined effect of innate entrepreneurial ability and credit access has a greater impact on upward class structure mobility than the interaction between formal schooling and credit access.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Journal of Development Studies.
Volume (Year): 35 (1999)
Issue (Month): 6 ()
Contact details of provider:
Web page: http://www.tandfonline.com/FJDS20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Rizov, Marian, 2002. "Agricultural Production Organization in Transition Economies and the Role of Human Capital: Evidence from Romania," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24925, European Association of Agricultural Economists.
- C. Kirabo Jackson & Henry S. Schneider, 2010.
"Do Social Connections Reduce Moral Hazard? Evidence from the New York City Taxi Industry,"
NBER Working Papers
16279, National Bureau of Economic Research, Inc.
- C. Kirabo Jackson & Henry S. Schneider, 2011. "Do Social Connections Reduce Moral Hazard? Evidence from the New York City Taxi Industry," American Economic Journal: Applied Economics, American Economic Association, vol. 3(3), pages 244-67, July.
- Rizov, Marian, 2003. "Human Capital And The Agrarian Structure In Transition: Micro Evidence From Romania," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25823, International Association of Agricultural Economists.
- Rizov, Marian & Swinnen, Johan F.M., 2004. "Human capital, market imperfections, and labor reallocation in transition," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 745-774, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.