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Membership has its privileges: the effect of social capital and neighbourhood characteristics on the earnings of microfinance borrowers

Rafael Gomez and Eric Santor ()

Canadian Journal of Economics, 2001, vol. 34, issue 4, 943-966

Abstract: In this paper we examine 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 among a unique sample of microfinance borrowers. We posit that social capital - social relations that facilitate individual action - is essential for microentrepreneurial success. Based on a survey and data collected by the authors, it is demonstrated that social capital is a positive determinant of self-employment earnings. The role that neighbourhoods play in fostering social capital and improving microentrepreneurial performance are also highlighted.

JEL-codes: J23 O17 Z13 (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (31)

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Journal Article: Membership has its privileges: the effect of social capital and neighbourhood characteristics on the earnings of microfinance borrowers (2001) Downloads
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