IDEAS home Printed from https://ideas.repec.org/a/taf/jdevst/v47y2011i1p48-69.html
   My bibliography  Save this article

How Access to Credit Affects Self-employment: Differences by Gender during India's Rural Banking Reform

Author

Listed:
  • Nidhiya Menon
  • Yana van der Meulen Rodgers

Abstract

Household survey data for 1983-2000 from India's National Sample Survey Organisation are used to examine the impact of credit on self-employment among men and women in rural labour households. Results indicate that credit access encourages women's self-employment as own-account workers and employers, while it discourages men's self-employment as unpaid family workers. Ownership of land, a key form of collateral, also serves as a strong predictor of self-employment. Among the lower castes in India, self-employment is less likely for scheduled castes prone to wage activity, but more likely for scheduled tribes prone to entrepreneurial work.

Suggested Citation

  • Nidhiya Menon & Yana van der Meulen Rodgers, 2011. "How Access to Credit Affects Self-employment: Differences by Gender during India's Rural Banking Reform," Journal of Development Studies, Taylor & Francis Journals, vol. 47(1), pages 48-69.
    • Handle: RePEc:taf:jdevst:v:47:y:2011:i:1:p:48-69
    DOI: 10.1080/00220381003706486
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00220381003706486
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00220381003706486?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David McKenzie, 2010. "Impact Assessments in Finance and Private Sector Development: What Have We Learned and What Should We Learn?," The World Bank Research Observer, World Bank, vol. 25(2), pages 209-233, August.
    2. Holtz-Eakin, Douglas & Joulfaian, David & Rosen, Harvey S, 1994. "Sticking It Out: Entrepreneurial Survival and Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 102(1), pages 53-75, February.
    3. Helzi Noponen, 1991. "The Dynamics of Work and Survival for the Urban Poor: A Gender Analysis of Panel Data from Madras," Development and Change, International Institute of Social Studies, vol. 22(2), pages 233-260, April.
    4. Nidhiya Menon, 2006. "Long-term benefits of membership in microfinance programmes," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(4), pages 571-594.
    5. Abhijit V. Banerjee & Esther Duflo, 2007. "The Economic Lives of the Poor," Journal of Economic Perspectives, American Economic Association, vol. 21(1), pages 141-168, Winter.
    6. Douglas Holtz-Eakin & David Joulfaian & Harvey S. Rosen, 1994. "Entrepreneurial Decisions and Liquidity Constraints," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 334-347, Summer.
    7. Signe-Mary McKernan, 2002. "The Impact Of Microcredit Programs On Self-Employment Profits: Do Noncredit Program Aspects Matter?," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 93-115, February.
    8. Suresh de Mel & David McKenzie & Christopher Woodruff, 2009. "Returns to Capital in Microenterprises: Evidence from a Field Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(1), pages 423-423.
    9. Mark M. Pitt & Shahidur R. Khandker, 1998. "The Impact of Group-Based Credit Programs on Poor Households in Bangladesh: Does the Gender of Participants Matter?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 958-996, October.
    10. Maitreyi Bordia Das, 2003. "The other side of self-employment : household enterprises in India," Social Protection Discussion Papers and Notes 27873, The World Bank.
    11. Peter Lanjouw & Rinku Murgai, 2009. "Poverty decline, agricultural wages, and nonfarm employment in rural India: 1983–2004," Agricultural Economics, International Association of Agricultural Economists, vol. 40(2), pages 243-263, March.
    12. Kevane, Michael & Wydick, Bruce, 2001. "Microenterprise Lending to Female Entrepreneurs: Sacrificing Economic Growth for Poverty Alleviation?," World Development, Elsevier, vol. 29(7), pages 1225-1236, July.
    13. Coleman, Brett E., 1999. "The impact of group lending in Northeast Thailand," Journal of Development Economics, Elsevier, vol. 60(1), pages 105-141, October.
    14. Lindh, Thomas & Ohlsson, Henry, 1996. "Self-Employment and Windfall Gains: Evidence from the Swedish Lottery," Economic Journal, Royal Economic Society, vol. 106(439), pages 1515-1526, November.
    15. M. M. Pitt & S. R. Khandker, 2002. "Credit Programmes for the Poor and Seasonality in Rural Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 39(2), pages 1-24.
    16. Kijima, Yoko, 2006. "Caste and Tribe Inequality: Evidence from India, 1983-1999," Economic Development and Cultural Change, University of Chicago Press, vol. 54(2), pages 369-404, January.
    17. Robin Burgess & Rohini Pande & Grace Wong, 2005. "Banking for the Poor: Evidence From India," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 268-278, 04/05.
    18. Robin Burgess & Rohini Pande, 2005. "Do Rural Banks Matter? Evidence from the Indian Social Banking Experiment," American Economic Review, American Economic Association, vol. 95(3), pages 780-795, June.
    19. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-338, May.
    20. S. Ramkumar & S.V.N. Rao & Kevin Waldie, 2004. "Dairy Cattle Rearing by Landless Rural Women in Pondicherry: A Path to Empowerment," Indian Journal of Gender Studies, Centre for Women's Development Studies, vol. 11(2), pages 205-222, June.
    21. Joseph P. Kaboski & Robert M. Townsend, 2005. "Policies and Impact: An Analysis of Village-Level Microfinance Institutions," Journal of the European Economic Association, MIT Press, vol. 3(1), pages 1-50, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lavlu Mozumdar & Valentina C. Materia & Geoffrey Hagelaar & Mohammad Amirul Islam & Gerben van der Velde & S. W. F. (Onno) Omta, 2022. "Contextuality of Entrepreneurial Orientation and Business Performance: The Case of Women Entrepreneurs in Bangladesh," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 8(1), pages 94-120, January.
    2. Chakravarty, Satya R. & Pal, Rupayan, 2013. "Financial inclusion in India: An axiomatic approach," Journal of Policy Modeling, Elsevier, vol. 35(5), pages 813-837.
    3. Sandhya Garg & Samarth Gupta, 2021. "Financial Access and Gender Gap in Entrepreneurship and Employment: Evidence from Rural India," IEG Working Papers 442, Institute of Economic Growth.
    4. Small, Sarah F. & van der Meulen Rodgers, Yana, 2023. "The gendered effects of investing in physical and social infrastructure," World Development, Elsevier, vol. 171(C).
    5. Lavlu Mozumdar & Geoffrey Hagelaar & Gerben van der Velde & S.W.F. Omta, 2020. "Determinants of the Business Performance of Women Entrepreneurs in the Developing World Context," J, MDPI, vol. 3(2), pages 1-21, May.
    6. John K. Pattison‐Williams & Philippe Marcoul & Sandeep Mohapatra, 2023. "Intrahousehold moral hazard frictions and household poverty traps in rural India," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(1), pages 67-96, January.
    7. Li, Changsheng & Ma, Wanglin & Mishra, Ashok K. & Gao, Liangliang, 2020. "Access to credit and farmland rental market participation: Evidence from rural China," China Economic Review, Elsevier, vol. 63(C).
    8. Han, Linghui & Hare, Denise, 2013. "The link between credit markets and self-employment choice among households in rural China," Journal of Asian Economics, Elsevier, vol. 26(C), pages 52-64.
    9. Jia, Xiangping & Xiang, Cheng & Huang, Jikun, 2013. "Microfinance, self-employment, and entrepreneurs in less developed areas of rural China," China Economic Review, Elsevier, vol. 27(C), pages 94-103.
    10. De Vita, Luisa & Mari, Michela & Poggesi, Sara, 2014. "Women entrepreneurs in and from developing countries: Evidences from the literature," European Management Journal, Elsevier, vol. 32(3), pages 451-460.
    11. Bairagya, Indrajit & Bhattacharya, Tulika & Bhattacharjee, Manojit, 2020. "Impact of Credit Accessibility on the Earnings of Self-employed Businesses in India," Journal of Asian Economics, Elsevier, vol. 69(C).
    12. Nidhiya Menon & Yana van der Meulen Rodgers, 2013. "Credit and self-employment," Chapters, in: Deborah M. Figart & Tonia L. Warnecke (ed.), Handbook of Research on Gender and Economic Life, chapter 22, pages 359-377, Edward Elgar Publishing.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nidhiya Menon & Yana van der Meulen Rodgers, 2013. "Credit and self-employment," Chapters, in: Deborah M. Figart & Tonia L. Warnecke (ed.), Handbook of Research on Gender and Economic Life, chapter 22, pages 359-377, Edward Elgar Publishing.
    2. Dean Karlan & Jonathan Zinman, 2010. "Expanding Credit Access: Using Randomized Supply Decisions to Estimate the Impacts," Review of Financial Studies, Society for Financial Studies, vol. 23(1), pages 433-464, January.
    3. Zinman, Jonathan, 2010. "Restricting consumer credit access: Household survey evidence on effects around the Oregon rate cap," Journal of Banking & Finance, Elsevier, vol. 34(3), pages 546-556, March.
    4. Karlan, Dean & Morduch, Jonathan, 2010. "Access to Finance," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4703-4784, Elsevier.
    5. Montgomery, Heather & Weiss, John, 2011. "Can Commercially-oriented Microfinance Help Meet the Millennium Development Goals? Evidence from Pakistan," World Development, Elsevier, vol. 39(1), pages 87-109, January.
    6. Bruhn, Miriam & Love, Inessa, 2009. "The economic impact of banking the unbanked : evidence from Mexico," Policy Research Working Paper Series 4981, The World Bank.
    7. Asadul Islam & Debayan Pakrashi, 2014. "The Microcredit Puzzle: Labour Supply Behaviour of Rural Households in Bangladesh," Monash Economics Working Papers 24-14, Monash University, Department of Economics.
    8. Blanchflower, David G., 2000. "Self-employment in OECD countries," Labour Economics, Elsevier, vol. 7(5), pages 471-505, September.
    9. Asli Demirgüç-Kunt & Ross Levine, 2009. "Finance and Inequality: Theory and Evidence," Annual Review of Financial Economics, Annual Reviews, vol. 1(1), pages 287-318, November.
    10. Gutiérrez-Nieto, Begoña & Serrano-Cinca, Carlos, 2019. "20 years of research in microfinance: An information management approach," International Journal of Information Management, Elsevier, vol. 47(C), pages 183-197.
    11. Pascaline Dupas & Jonathan Robinson, 2013. "Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 163-192, January.
    12. Joseph P. Kaboski & Robert M. Townsend, 2011. "A Structural Evaluation of a Large‐Scale Quasi‐Experimental Microfinance Initiative," Econometrica, Econometric Society, vol. 79(5), pages 1357-1406, September.
    13. John Weiss & Heather Montgomery, 2005. "Great Expectations: Microfinance and Poverty Reduction in Asia and Latin America," Oxford Development Studies, Taylor & Francis Journals, vol. 33(3-4), pages 391-416.
    14. Namayengo., Faith & van Ophem, Johan A.C. & Antonides, Gerrit, 2016. "Women And Microcredit In Rural Agrarian Households Of Uganda: Match Or Mismatch Between Lender And Borrower?," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 10(2-3), pages 1-12, October.
    15. Sefa K. Awaworyi, 2014. "The Impact of Microfinance Interventions: A Meta-analysis," Monash Economics Working Papers 03-14, Monash University, Department of Economics.
    16. Miriam Bruhn & Inessa Love, 2011. "Gender differences in the impact of banking services: evidence from Mexico," Small Business Economics, Springer, vol. 37(4), pages 493-512, November.
    17. Maren Duvendack & Richard Palmer-Jones, 2012. "High Noon for Microfinance Impact Evaluations: Re-investigating the Evidence from Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 48(12), pages 1864-1880, December.
    18. Kar, Saibal & Dutta, Meghna, 2014. "The unorganised sector and access to finance in rural India," MPRA Paper 103449, University Library of Munich, Germany.
    19. Hisaki KONO & Kazushi TAKAHASHI, 2010. "Microfinance Revolution: Its Effects, Innovations, And Challenges," The Developing Economies, Institute of Developing Economies, vol. 48(1), pages 15-73, March.
    20. Zinman, Jonathan & Karlan, Dean, 2009. "Expanding Microenterprise Credit Access: Using Randomized Supply Decisions to Estimate the Impacts in Manila," CEPR Discussion Papers 7396, C.E.P.R. Discussion Papers.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jdevst:v:47:y:2011:i:1:p:48-69. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/FJDS20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.