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Returns to Micro-Entrepreneurship in an Emerging Economy: A Quantile Study of Entrepreneurial Indonesian Households’ Welfare

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  • Virginie Vial

    (Euromed Marseille - École de management - Association Euromed Management - Marseille, CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine)

  • Julien Hanoteau

    (GEM - Groupe d'économie mondiale - Sciences Po, GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique - AMU - Aix Marseille Université - EHESS - École des hautes études en sciences sociales)

Abstract

Presenting low individual returns, but providing households with livelihoods and means to cope with economic vulnerability, micro-entrepreneurship’s evaluation should include both context and heterogeneity. Using a four-wave panel of 9,157 Indonesian households, this study proposes a quantile estimation of micro-entrepreneurship’s effects on four household-level complementary measures of welfare – income, consumption, household, and total assets. It evidences substantial positive but decreasing effects on the four measures, with the highest relative returns for the poorest. For this category, micro-entrepreneurship primarily provides returns in the form of income, translating into higher relative consumption, but more importantly, into a greater relative assets accumulation.

Suggested Citation

  • Virginie Vial & Julien Hanoteau, 2015. "Returns to Micro-Entrepreneurship in an Emerging Economy: A Quantile Study of Entrepreneurial Indonesian Households’ Welfare," Post-Print hal-01457392, HAL.
  • Handle: RePEc:hal:journl:hal-01457392
    DOI: 10.1016/j.worlddev.2015.04.008
    Note: View the original document on HAL open archive server: https://hal-amu.archives-ouvertes.fr/hal-01457392
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    1. Van den Broeck, Goedele & Swinnen, Johan & Maertens, Miet, 2017. "Global value chains, large-scale farming, and poverty: Long-term effects in Senegal," Food Policy, Elsevier, vol. 66(C), pages 97-107.
    2. repec:gam:jscscx:v:7:y:2018:i:4:p:54-:d:139396 is not listed on IDEAS

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