Self-Help Groups and Income Generation in the Informal Settlements of Nairobi
AbstractThe aim of this paper is to understand the functioning and the scope of self-help groups in the informal settlements of urban areas as a means of generating income for poor households. The paper uses a unique dataset collected by the author in 1999 surveying all individual group members from several informal settlements of Nairobi. It studies the individual determinants of earnings within groups and relates group composition to various indicators of group functioning. Sex, age and ethnic identity are among the most important determinants of individual reliance on group income and of access to group loans. Heterogeneity in earnings among members is shown to reduce their ability to borrow from the group as a whole but not from each other. The impact of ethnic and other forms of heterogeneity on the division of labor, choice of compensation schemes, sanctioning technology and recruitment criteria is also described.
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Bibliographic InfoPaper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 163.
Date of creation: 01 May 2002
Date of revision:
self-help groups; cooperative; participation; social capital;
Other versions of this item:
- Eliana La Ferrara, 2002. "Self-help Groups and Income Generation in the Informal Settlements of Nairobi," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 11(1), pages 61-89, March.
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- P13 - Economic Systems - - Capitalist Systems - - - Cooperative Enterprises
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
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