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

Virginie Vial and Julien Hanoteau
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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

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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.

Keywords: economic welfare; Indonesia; micro-entrepreneurship; Quantile regression; self-employment (search for similar items in EconPapers)
Date: 2015-10
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Published in World Development, 2015, 74 (C), pp.142--157. ⟨10.1016/j.worlddev.2015.04.008⟩

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Journal Article: Returns to Micro-Entrepreneurship in an Emerging Economy: A Quantile Study of Entrepreneurial Indonesian Households’ Welfare (2015)
Working Paper: Returns to Micro-Entrepreneurship in an Emerging Economy: A Quantile Study of Entrepreneurial Indonesian Households’ Welfare (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:spmain:hal-01457392

DOI: 10.1016/j.worlddev.2015.04.008

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