Household Matters: Revisiting the Returns to Capital among Female Micro-entrepreneurs

Uses data from trials to show that the gender gap in microenterprise performance is not due to a gap in aptitude

Abstract

Several field experiments find positive returns to grants for male and not female micro-entrepreneurs. But these analyses overlook that female entrepreneurs often reside with a male business owner. Using data from randomized trials in India, SriLanka and Ghana, Bernhardt, Field, Pande, and Rigol (2017) show that the gender gap in microenterprise performance is not due to a gap in aptitude. Instead, low average returns of female-run enterprises reflects the fact that women’s capital is typically invested into their husband’s enterprise. Household-level income gains are equivalent regardless of the grant or loan recipient’s gender.

This research was funded under the Private Enterprise Development in Low Income Countries (PEDL) Programme

Citation

Field, E., Pamde, R., Rigol, N. Household Matters: Returns to Capital among Female Microentrepreneurs. (2017) 20pp

Household Matters: Revisiting the Returns to Capital among Female Micro-entrepreneurs

Published 1 August 2017