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«Credit and Self-Employment Nidhiya Menon, Brandeis University Yana van der Meulen Rodgers, Rutgers University Version: May 9, 2011 Draft Chapter for ...»

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See Burgess and Pande (2005) for evidence linking India’s rural banking reforms with poverty reduction.

See Pitt and Khandker (1998) and de Aghion and Morduch (2005) for empirical evidence of the impacts of the Grameen Bank.

See de Aghion and Morduch (2005) for more discussion of the background and prevalence of microfinance programs.

A number of countries reported two sets of statistics on employment status: those based on population census data, and those based on labor force surveys. In this situation, as a general rule we chose the data based on labor force surveys because they tended to be more recent. Several other countries reported two sets of employment status data, one for the entire country and one for just urban areas. In this latter situation, as a general rule we chose the data for the entire country.

This definition is found on the ILO’s “Main Statistics (Annual) Employment” webpage at http://laborsta.ilo.org/applv8/data/c2e.html.

The classification of countries follows the World Bank’s definition of income groups, found at http://data.worldbank.org/about/country-classifications/country-and-lending-groups.

These averages on self-employment in Nepal are from Menon and Rodgers (2011b).

See especially Acharya (2008) on the generation of new employment opportunities in industry for women in Nepal.

See Karlan and Morduch (2009) for more discussion of this argument.

See especially results in McKernan (2002) and Kaboski and Townsend (2005).

This additional evidence for India is from Luke and Munshi (2011).

Other studies for industrialized countries have also found that the decision to become selfemployed is constrained by access to credit, and relief of those constraints through a loan or a windfall gain increases the probability of becoming or remaining self-employed. See especially Holtz-Eakin et al. (1994a, 1994b).

These arguments are explored further in Johnson (1998), Pollin et al. (2007), Berik and Rodgers (2009), and Seguino et al. (2010).

See Crowell (2003).

There is a large literature on the impacts of SEWA in India. See, for example, Datta (2003) and Chen et al. (2007).

See Blumberg (1988), Haddad et al. (1997), Quisumbing and Maluccio (2000), World Bank (2001), and Holvoet (2005).

These findings are from Hoddinott and Haddad (1995).

This evidence on income and expenditures in Brazil is from Thomas (1997).

See Bianchi (2000) for a review of studies supporting these arguments on the potential tradeoffs, or lack thereof, between market work and time spent with children in developing countries.

Similar results were found for Nicaragua in Wolfe and Behrman (1982).

Omitted variables that are correlated with the outcomes of interest may also induce problems with estimating the impact of credit.

See Ravallion (2009).

See Pitt and Khandker (1998).

For more discussion of the KWFT, see Pollin et al. (2007).

This program is discussed in Manasan (2009).

This reduction in women’s self-employment opportunities is documented in Rodgers and

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