Membership has its priveleges : the effect of social capital and neighbourhood characteristics on the earnings of microfinance borrowers
AbstractThis paper examines 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 amongst a unique sample of microfinance borrowers. The paper posits that social capital - social relations that facilitate individual action – is essential for microentrepreneurial success. Based on a survey and data collected by the authors, this study demonstrates that social capital is a positive determinant of self-employment earnings. It also highlights the role that neighbourhoods play in fostering social capital and improving microentrepreneurial performance.
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Bibliographic InfoPaper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 361.
Date of creation: Nov 2001
Date of revision:
Publication status: Published in Canadian Journal of Economics, November, 2001, 34(4), pp. 943-966. ISSN: 1540-5982
Microfinance; self-employment; social capital. JEL classification codes : J23; Z13; O17;
Other versions of this item:
- Rafael Gomez & Eric Santor, 2001. "Membership has its privileges: the effect of social capital and neighbourhood characteristics on the earnings of microfinance borrowers," Canadian Journal of Economics, Canadian Economics Association, vol. 34(4), pages 943-966, November.
- F3 - International Economics - - International Finance
- G3 - Financial Economics - - Corporate Finance and Governance
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