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How Access to Credit Affects Self-employment: Differences by Gender during India's Rural Banking Reform

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  • Nidhiya Menon
  • Yana van der Meulen Rodgers

Abstract

Household survey data for 1983-2000 from India's National Sample Survey Organisation are used to examine the impact of credit on self-employment among men and women in rural labour households. Results indicate that credit access encourages women's self-employment as own-account workers and employers, while it discourages men's self-employment as unpaid family workers. Ownership of land, a key form of collateral, also serves as a strong predictor of self-employment. Among the lower castes in India, self-employment is less likely for scheduled castes prone to wage activity, but more likely for scheduled tribes prone to entrepreneurial work.

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  • Nidhiya Menon & Yana van der Meulen Rodgers, 2011. "How Access to Credit Affects Self-employment: Differences by Gender during India's Rural Banking Reform," Journal of Development Studies, Taylor & Francis Journals, vol. 47(1), pages 48-69.
    • Handle: RePEc:taf:jdevst:v:47:y:2011:i:1:p:48-69
    DOI: 10.1080/00220381003706486
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    10. Li, Changsheng & Ma, Wanglin & Mishra, Ashok K. & Gao, Liangliang, 2020. "Access to credit and farmland rental market participation: Evidence from rural China," China Economic Review, Elsevier, vol. 63(C).
    11. Han, Linghui & Hare, Denise, 2013. "The link between credit markets and self-employment choice among households in rural China," Journal of Asian Economics, Elsevier, vol. 26(C), pages 52-64.
    12. Jia, Xiangping & Xiang, Cheng & Huang, Jikun, 2013. "Microfinance, self-employment, and entrepreneurs in less developed areas of rural China," China Economic Review, Elsevier, vol. 27(C), pages 94-103.
    13. De Vita, Luisa & Mari, Michela & Poggesi, Sara, 2014. "Women entrepreneurs in and from developing countries: Evidences from the literature," European Management Journal, Elsevier, vol. 32(3), pages 451-460.
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    15. Nidhiya Menon & Yana van der Meulen Rodgers, 2013. "Credit and self-employment," Chapters, in: Deborah M. Figart & Tonia L. Warnecke (ed.), Handbook of Research on Gender and Economic Life, chapter 22, pages 359-377, Edward Elgar Publishing.

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