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

Gomez, Rafael and Santor, Eric (2001) Membership has its priveleges : the effect of social capital and neighbourhood characteristics on the earnings of microfinance borrowers. Canadian Journal of Economics, 34 (4). pp. 943-966. ISSN 1540-5982

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Abstract

This paper examines 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 amongst a unique sample of microfinance borrowers. The paper posits that social capital - social relations that facilitate individual action – is essential for microentrepreneurial success. Based on a survey and data collected by the authors, this study demonstrates that social capital is a positive determinant of self-employment earnings. It also highlights the role that neighbourhoods play in fostering social capital and improving microentrepreneurial performance.

Item Type: Article
Official URL: http://www.blackwellpublishing.com/journals/CJE
Additional Information: This is an electronic version of an Article published in the Canadian Journal of Economics 34 (4), pp. 943-966 © [2001] Blackwell Publishing. Articles available via LSE Research Articles Online are protected under intellectual property law, including copyright law. Any use made of the contents should comply with the relevant law. Journal also published in French : Revue canadienne d'economique.
Library of Congress subject classification: H Social Sciences > HG Finance
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 11 Aug 2005
URL: http://eprints.lse.ac.uk/361/

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