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Are Women More Credit Constrained? Experiemental Evidence on Gender and Microenterprise Returns Image

Promoting Inclusive Markets and Financial Systems

Are Women More Credit Constrained? Experiemental Evidence on Gender and Microenterprise Returns

Are Women More Credit Constrained? Experiemental Evidence on Gender and Microenterprise Returns

Summary

The paper is based on a field experiment which provided cash, equipment and working capital to randomly selected microenterprise owners in Sri Lanka. The entrepreneurs could use cash either for their business or other purposes. The results revealed large, sustained increase in income for male owners, but no income increase for female owners. The study validates the results with data from microenterprise surveys in Brazil and Mexico. The findings have implications for programs aimed at empowering women to make more consumption decisions in the household.

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