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

This paper analyzes data from a randomized experiment on mean returns to capital in Sri Lankan micro-enterprises. The findings show greater returns among men than among women; indeed, returns were not different from zero for women. The authors expl...

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Bibliographic Details
Main Authors: de Mel, Suresh, McKenzie, David, Woodruff, Christopher
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2008/10/9903470/women-more-credit-constrained-experimental-evidence-gender-microenterprise-returns
http://hdl.handle.net/10986/6933
id okr-10986-6933
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCESS TO BANK
ACCESS TO BANK LOANS
ACCESS TO CAPITAL
ACCESS TO CREDIT
ACCESS TO FINANCE
ACCESS TO FORMAL FINANCE
ACCOUNTING
ACHIEVEMENT MOTIVATION
AGRICULTURE
AMOUNT OF CAPITAL
ASSET ACCUMULATION
ASSET OWNERSHIP
BANKS
BEST PRACTICES
BORROWING
BUSINESS EXPERIENCE
BUSINESS NETWORKS
BUSINESS OWNER
CAPITAL CONSTRAINTS
CAPITAL FLOWS
CAPITAL INJECTION
CAPITAL INVESTMENTS
CAPITAL MARKET
CAPITAL STOCK
CAPITAL STOCKS
CARE FOR CHILDREN
CASH PAYMENT
COLLATERAL
CONSUMERS
CREDIT CONSTRAINTS
CREDIT MARKET
CREDIT MARKETS
CREDIT UNIONS
CURRENT ACCOUNT
CURRENT EXPENDITURE
CUSTOMER BASE
DECISION MAKING
DEMAND FOR CREDIT
DEPOSIT ACCOUNT
DEVELOPING COUNTRIES
DEVELOPMENT BANK
DEVELOPMENT ECONOMICS
DIMINISHING RETURNS
DUMMY VARIABLE
DUMMY VARIABLES
DURABLE
DURABLE ASSETS
DURABLE GOODS
EARNINGS
ECONOMIC DEVELOPMENT
ECONOMIC EFFICIENCY
ECONOMIC GROWTH
EDUCATION LEVELS
ELDERLY PARENTS
EMPOWERMENT
ENTREPRENEUR
ENTREPRENEURIAL ABILITY
ENTREPRENEURIAL ATTITUDES
ENTREPRENEURS
EQUAL AMOUNTS
EQUALITY
EQUIPMENT
EQUIPMENT PURCHASE
EQUIPMENT PURCHASES
EXPENDITURE
EXPENDITURES
FAMILY MEMBERS
FATHER
FEMALE
FEMALE BORROWERS
FEMALE ENTERPRISE
FEMALE ENTERPRISES
FEMALE ENTREPRENEURS
FEMALE WORKERS
FEMALE-OWNED BUSINESSES
FEMALES
FINANCIAL ASSETS
FINANCIAL INSTITUTION
FINANCIAL LITERACY
FINANCIAL SERVICES
FINANCIAL SUPPORT
FIRM PERFORMANCE
FIXED DEPOSIT
FORMAL CREDIT
FORMAL LOAN
FUTURE RESEARCH
GENDER
GENDER ANALYSIS
GENDER DIFFERENCE
GENDER DIFFERENCES
GENDER EQUALITY
GENDER GAP
GENDERS
HEALTH CARE
HOUSEHOLD ASSET ACCUMULATION
HOUSEHOLD BARGAINING
HOUSEHOLD BUSINESS
HOUSEHOLD EXPENDITURE
HOUSEHOLD EXPENDITURES
HOUSEHOLD INCOME
HOUSEHOLDS
HUSBAND
HUSBANDS
ILLNESS
INCOMPLETE MARKETS
INFLATION
INITIAL FUNDING
INITIAL INVESTMENTS
INSTRUMENT
INSURANCE
INSURANCE MARKETS
INTEREST RATE
INTEREST RATES
INTERNATIONAL BANK
INVENTORIES
INVENTORY
INVESTING
INVESTMENT BEHAVIOR
INVESTMENT DECISIONS
INVESTMENT OPPORTUNITIES
LABOR FORCE
LABOR FORCE PARTICIPATION
LABOR FORCE SURVEY
LABOR HOURS
LABOR MARKET
LENDERS
LIQUIDITY
LOAN
LOAN AMOUNT
LOANS FROM FAMILY
LOTTERY
LOW-INCOME
MARKET INTEREST RATE
MARKET INTEREST RATES
MARKET VALUE
MICRO-ENTERPRISES
MICRO-LOANS
MICROCREDIT
MICROENTERPRISES
MICROFINANCE
MOTHER
OLDER CHILDREN
PHYSICAL CAPITAL
POLITICAL ECONOMY
POVERTY ALLEVIATION
PRICE INDEX
PRICE INDICES
PRIVATE BANK
PRODUCTION FUNCTION
PRODUCTIVITY
PROFITABLE INVESTMENT
PROFITABLE INVESTMENTS
REINVESTMENT
RESEARCH ASSISTANCE
RESOURCE ALLOCATION
RESPONSIBILITIES
RETIREMENT
RETURN
RETURN ON INVESTMENT
RETURNS
RISK AVERSE
RISK AVERSION
RISK-AVERSE INDIVIDUALS
SALES
SAVINGS
SAVINGS ACCOUNT
SELF EMPLOYMENT
SELF-EMPLOYMENT
SMALL ENTERPRISES
SOURCE OF INCOME
SOURCE OF INFORMATION
START-UP
SUPPLY OF CREDIT
TYPES OF ASSETS
UMBRELLA ORGANIZATION
VILLAGE
WAGE
WEALTH
WOMEN ENTREPRENEURS
WORKING AGE
WORKING CAPITAL
Microdata Set
spellingShingle ACCESS TO BANK
ACCESS TO BANK LOANS
ACCESS TO CAPITAL
ACCESS TO CREDIT
ACCESS TO FINANCE
ACCESS TO FORMAL FINANCE
ACCOUNTING
ACHIEVEMENT MOTIVATION
AGRICULTURE
AMOUNT OF CAPITAL
ASSET ACCUMULATION
ASSET OWNERSHIP
BANKS
BEST PRACTICES
BORROWING
BUSINESS EXPERIENCE
BUSINESS NETWORKS
BUSINESS OWNER
CAPITAL CONSTRAINTS
CAPITAL FLOWS
CAPITAL INJECTION
CAPITAL INVESTMENTS
CAPITAL MARKET
CAPITAL STOCK
CAPITAL STOCKS
CARE FOR CHILDREN
CASH PAYMENT
COLLATERAL
CONSUMERS
CREDIT CONSTRAINTS
CREDIT MARKET
CREDIT MARKETS
CREDIT UNIONS
CURRENT ACCOUNT
CURRENT EXPENDITURE
CUSTOMER BASE
DECISION MAKING
DEMAND FOR CREDIT
DEPOSIT ACCOUNT
DEVELOPING COUNTRIES
DEVELOPMENT BANK
DEVELOPMENT ECONOMICS
DIMINISHING RETURNS
DUMMY VARIABLE
DUMMY VARIABLES
DURABLE
DURABLE ASSETS
DURABLE GOODS
EARNINGS
ECONOMIC DEVELOPMENT
ECONOMIC EFFICIENCY
ECONOMIC GROWTH
EDUCATION LEVELS
ELDERLY PARENTS
EMPOWERMENT
ENTREPRENEUR
ENTREPRENEURIAL ABILITY
ENTREPRENEURIAL ATTITUDES
ENTREPRENEURS
EQUAL AMOUNTS
EQUALITY
EQUIPMENT
EQUIPMENT PURCHASE
EQUIPMENT PURCHASES
EXPENDITURE
EXPENDITURES
FAMILY MEMBERS
FATHER
FEMALE
FEMALE BORROWERS
FEMALE ENTERPRISE
FEMALE ENTERPRISES
FEMALE ENTREPRENEURS
FEMALE WORKERS
FEMALE-OWNED BUSINESSES
FEMALES
FINANCIAL ASSETS
FINANCIAL INSTITUTION
FINANCIAL LITERACY
FINANCIAL SERVICES
FINANCIAL SUPPORT
FIRM PERFORMANCE
FIXED DEPOSIT
FORMAL CREDIT
FORMAL LOAN
FUTURE RESEARCH
GENDER
GENDER ANALYSIS
GENDER DIFFERENCE
GENDER DIFFERENCES
GENDER EQUALITY
GENDER GAP
GENDERS
HEALTH CARE
HOUSEHOLD ASSET ACCUMULATION
HOUSEHOLD BARGAINING
HOUSEHOLD BUSINESS
HOUSEHOLD EXPENDITURE
HOUSEHOLD EXPENDITURES
HOUSEHOLD INCOME
HOUSEHOLDS
HUSBAND
HUSBANDS
ILLNESS
INCOMPLETE MARKETS
INFLATION
INITIAL FUNDING
INITIAL INVESTMENTS
INSTRUMENT
INSURANCE
INSURANCE MARKETS
INTEREST RATE
INTEREST RATES
INTERNATIONAL BANK
INVENTORIES
INVENTORY
INVESTING
INVESTMENT BEHAVIOR
INVESTMENT DECISIONS
INVESTMENT OPPORTUNITIES
LABOR FORCE
LABOR FORCE PARTICIPATION
LABOR FORCE SURVEY
LABOR HOURS
LABOR MARKET
LENDERS
LIQUIDITY
LOAN
LOAN AMOUNT
LOANS FROM FAMILY
LOTTERY
LOW-INCOME
MARKET INTEREST RATE
MARKET INTEREST RATES
MARKET VALUE
MICRO-ENTERPRISES
MICRO-LOANS
MICROCREDIT
MICROENTERPRISES
MICROFINANCE
MOTHER
OLDER CHILDREN
PHYSICAL CAPITAL
POLITICAL ECONOMY
POVERTY ALLEVIATION
PRICE INDEX
PRICE INDICES
PRIVATE BANK
PRODUCTION FUNCTION
PRODUCTIVITY
PROFITABLE INVESTMENT
PROFITABLE INVESTMENTS
REINVESTMENT
RESEARCH ASSISTANCE
RESOURCE ALLOCATION
RESPONSIBILITIES
RETIREMENT
RETURN
RETURN ON INVESTMENT
RETURNS
RISK AVERSE
RISK AVERSION
RISK-AVERSE INDIVIDUALS
SALES
SAVINGS
SAVINGS ACCOUNT
SELF EMPLOYMENT
SELF-EMPLOYMENT
SMALL ENTERPRISES
SOURCE OF INCOME
SOURCE OF INFORMATION
START-UP
SUPPLY OF CREDIT
TYPES OF ASSETS
UMBRELLA ORGANIZATION
VILLAGE
WAGE
WEALTH
WOMEN ENTREPRENEURS
WORKING AGE
WORKING CAPITAL
Microdata Set
de Mel, Suresh
McKenzie, David
Woodruff, Christopher
Are Women More Credit Constrained? Experimental Evidence on Gender and Microenterprise Returns
relation Policy Research Working Paper; No. 4746
description This paper analyzes data from a randomized experiment on mean returns to capital in Sri Lankan micro-enterprises. The findings show greater returns among men than among women; indeed, returns were not different from zero for women. The authors explore different explanations for the lower returns among female owners, and find no evidence that the gender gap is explained by differences in ability, risk aversion, or entrepreneurial attitudes. Differential access to unpaid family labor and social constraints limiting sales to local areas are not important. However, there is evidence that women invested grants differently from men. A smaller share of the smaller grants remained in the female-owned enterprises, and men were more likely to spend the grant on working capital and women on equipment. The gender gap is largest when male-dominated sectors are compared with female-dominated sectors, although female returns are lower than male returns even for females working in the same industries as men. The authors examine the heterogeneity of returns to determine whether any group of businesses owned by women benefit from easing capital constraints. The results suggest there is a large group of high-return male owners and a smaller group of poor, high-ability, female owners who might benefit from more access to capital.
format Publications & Research :: Policy Research Working Paper
author de Mel, Suresh
McKenzie, David
Woodruff, Christopher
author_facet de Mel, Suresh
McKenzie, David
Woodruff, Christopher
author_sort de Mel, Suresh
title Are Women More Credit Constrained? Experimental Evidence on Gender and Microenterprise Returns
title_short Are Women More Credit Constrained? Experimental Evidence on Gender and Microenterprise Returns
title_full Are Women More Credit Constrained? Experimental Evidence on Gender and Microenterprise Returns
title_fullStr Are Women More Credit Constrained? Experimental Evidence on Gender and Microenterprise Returns
title_full_unstemmed Are Women More Credit Constrained? Experimental Evidence on Gender and Microenterprise Returns
title_sort are women more credit constrained? experimental evidence on gender and microenterprise returns
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2008/10/9903470/women-more-credit-constrained-experimental-evidence-gender-microenterprise-returns
http://hdl.handle.net/10986/6933
_version_ 1764401348613242880
spelling okr-10986-69332021-04-23T14:02:32Z Are Women More Credit Constrained? Experimental Evidence on Gender and Microenterprise Returns de Mel, Suresh McKenzie, David Woodruff, Christopher ACCESS TO BANK ACCESS TO BANK LOANS ACCESS TO CAPITAL ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FORMAL FINANCE ACCOUNTING ACHIEVEMENT MOTIVATION AGRICULTURE AMOUNT OF CAPITAL ASSET ACCUMULATION ASSET OWNERSHIP BANKS BEST PRACTICES BORROWING BUSINESS EXPERIENCE BUSINESS NETWORKS BUSINESS OWNER CAPITAL CONSTRAINTS CAPITAL FLOWS CAPITAL INJECTION CAPITAL INVESTMENTS CAPITAL MARKET CAPITAL STOCK CAPITAL STOCKS CARE FOR CHILDREN CASH PAYMENT COLLATERAL CONSUMERS CREDIT CONSTRAINTS CREDIT MARKET CREDIT MARKETS CREDIT UNIONS CURRENT ACCOUNT CURRENT EXPENDITURE CUSTOMER BASE DECISION MAKING DEMAND FOR CREDIT DEPOSIT ACCOUNT DEVELOPING COUNTRIES DEVELOPMENT BANK DEVELOPMENT ECONOMICS DIMINISHING RETURNS DUMMY VARIABLE DUMMY VARIABLES DURABLE DURABLE ASSETS DURABLE GOODS EARNINGS ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH EDUCATION LEVELS ELDERLY PARENTS EMPOWERMENT ENTREPRENEUR ENTREPRENEURIAL ABILITY ENTREPRENEURIAL ATTITUDES ENTREPRENEURS EQUAL AMOUNTS EQUALITY EQUIPMENT EQUIPMENT PURCHASE EQUIPMENT PURCHASES EXPENDITURE EXPENDITURES FAMILY MEMBERS FATHER FEMALE FEMALE BORROWERS FEMALE ENTERPRISE FEMALE ENTERPRISES FEMALE ENTREPRENEURS FEMALE WORKERS FEMALE-OWNED BUSINESSES FEMALES FINANCIAL ASSETS FINANCIAL INSTITUTION FINANCIAL LITERACY FINANCIAL SERVICES FINANCIAL SUPPORT FIRM PERFORMANCE FIXED DEPOSIT FORMAL CREDIT FORMAL LOAN FUTURE RESEARCH GENDER GENDER ANALYSIS GENDER DIFFERENCE GENDER DIFFERENCES GENDER EQUALITY GENDER GAP GENDERS HEALTH CARE HOUSEHOLD ASSET ACCUMULATION HOUSEHOLD BARGAINING HOUSEHOLD BUSINESS HOUSEHOLD EXPENDITURE HOUSEHOLD EXPENDITURES HOUSEHOLD INCOME HOUSEHOLDS HUSBAND HUSBANDS ILLNESS INCOMPLETE MARKETS INFLATION INITIAL FUNDING INITIAL INVESTMENTS INSTRUMENT INSURANCE INSURANCE MARKETS INTEREST RATE INTEREST RATES INTERNATIONAL BANK INVENTORIES INVENTORY INVESTING INVESTMENT BEHAVIOR INVESTMENT DECISIONS INVESTMENT OPPORTUNITIES LABOR FORCE LABOR FORCE PARTICIPATION LABOR FORCE SURVEY LABOR HOURS LABOR MARKET LENDERS LIQUIDITY LOAN LOAN AMOUNT LOANS FROM FAMILY LOTTERY LOW-INCOME MARKET INTEREST RATE MARKET INTEREST RATES MARKET VALUE MICRO-ENTERPRISES MICRO-LOANS MICROCREDIT MICROENTERPRISES MICROFINANCE MOTHER OLDER CHILDREN PHYSICAL CAPITAL POLITICAL ECONOMY POVERTY ALLEVIATION PRICE INDEX PRICE INDICES PRIVATE BANK PRODUCTION FUNCTION PRODUCTIVITY PROFITABLE INVESTMENT PROFITABLE INVESTMENTS REINVESTMENT RESEARCH ASSISTANCE RESOURCE ALLOCATION RESPONSIBILITIES RETIREMENT RETURN RETURN ON INVESTMENT RETURNS RISK AVERSE RISK AVERSION RISK-AVERSE INDIVIDUALS SALES SAVINGS SAVINGS ACCOUNT SELF EMPLOYMENT SELF-EMPLOYMENT SMALL ENTERPRISES SOURCE OF INCOME SOURCE OF INFORMATION START-UP SUPPLY OF CREDIT TYPES OF ASSETS UMBRELLA ORGANIZATION VILLAGE WAGE WEALTH WOMEN ENTREPRENEURS WORKING AGE WORKING CAPITAL Microdata Set This paper analyzes data from a randomized experiment on mean returns to capital in Sri Lankan micro-enterprises. The findings show greater returns among men than among women; indeed, returns were not different from zero for women. The authors explore different explanations for the lower returns among female owners, and find no evidence that the gender gap is explained by differences in ability, risk aversion, or entrepreneurial attitudes. Differential access to unpaid family labor and social constraints limiting sales to local areas are not important. However, there is evidence that women invested grants differently from men. A smaller share of the smaller grants remained in the female-owned enterprises, and men were more likely to spend the grant on working capital and women on equipment. The gender gap is largest when male-dominated sectors are compared with female-dominated sectors, although female returns are lower than male returns even for females working in the same industries as men. The authors examine the heterogeneity of returns to determine whether any group of businesses owned by women benefit from easing capital constraints. The results suggest there is a large group of high-return male owners and a smaller group of poor, high-ability, female owners who might benefit from more access to capital. 2012-06-01T21:09:07Z 2012-06-01T21:09:07Z 2008-10 http://documents.worldbank.org/curated/en/2008/10/9903470/women-more-credit-constrained-experimental-evidence-gender-microenterprise-returns http://hdl.handle.net/10986/6933 English Policy Research Working Paper; No. 4746 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research