TY  - RPRT
        AU  - Brudevold-Newman, Andrew
AU  - Honorati, Maddalena
AU  - Jakiela, Pamela
AU  - Ozier, Owen
        TI  - A Firm of One's Own: Experimental Evidence on Credit Constraints and Occupational Choice
        PY  - 2017/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 10583
        UR  - https://www.iza.org/publications/dp10583
        AB  - We conducted a randomized evaluation of two labor market interventions targeted to young women aged 18 to 19 in three of Nairobi's poorest neighborhoods. One treatment offered participants a bundled intervention designed to simultaneously relieve credit and human capital constraints; a second treatment provided women with an unrestricted cash grant, but no training or other support. Both interventions had economically large and statistically significant impacts on income over the medium-term (7 to 10 months after the end of the interventions), but these impacts dissipated in the second year after treatment.
Our results are consistent with a model in which savings constraints prevent women from smoothing consumption after receiving large transfers – even in the absence of credit constraints, and when participants have no intention of remaining in entrepreneurship. We also show that participants hold remarkably accurate beliefs about the impacts of the treatments on occupational choice. 
        KW  - youth unemployment
KW  - microenterprises
KW  - entrepreneurship
KW  - credit constraints
KW  - cash grants
KW  - training
KW  - Africa
KW  - gender
        ER  -