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Published Article

A Firm of One’s Own: Experimental Evidence on Credit Constraints and Occupational Choice

We evaluate two interventions targeting young women in Nairobi, Kenya. The first is a multifaceted program involving vocational training, in-kind transfers of physical capital, and ongoing mentoring. The second is an unrestricted cash grant. Both interventions shift women into self-employment, and impacts persist after six years. Both programs also increase income in the short-term, but those effects disappear over time. Though the two treatments have similar impacts on labor market outcomes, women in the multifaceted program report significantly higher wellbeing six years after treatment relative to both women in the control group and those who received the grants.

Title A Firm of One’s Own: Experimental Evidence on Credit Constraints and Occupational Choice
Author
  • Andrew Brudevold-Newman
  • Maddalena Honorati
  • Gerald Ipapa
  • Pamela Jakiela
  • Owen Ozier
Published in The Review of Economics and Statistics 1–25
Publication Date 29/10/2024
Project Girls Empowered by Microfranchising
See Published Article

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Established in 1998 in Bonn, Germany, IZA is an independent, non-profit research institution supported by the Deutsche Post Foundation with a focus on the analysis of global labour markets. It operates an international network of about 1,500 economists and researchers spanning across more than 50 countries.

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The Foreign, Commonwealth & Development Office (FCDO) leads the UK's work to end extreme poverty. We're ending the need for aid by creating jobs, unlocking the potential of girls and women, and helping to save lives when humanitarian emergencies hit.

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