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

Rafael Gomez and Eric Santor

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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.

Keywords: microfinance; self-employment; social capital (search for similar items in EconPapers)
JEL-codes: J23 O17 Z13 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2001-11-01
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Citations: View citations in EconPapers (30)

Published in Canadian Journal of Economics, 1, November, 2001, 34(4), pp. 943 - 966. ISSN: 0008-4085

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Related works:
Journal Article: Membership has its privileges: the effect of social capital and neighbourhood characteristics on the earnings of microfinance borrowers (2001)
Journal Article: Membership has its privileges: the effect of social capital and neighbourhood characteristics on the earnings of microfinance borrowers (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:17008

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