The Pecuniary and Non-Pecuniary Returns to Micro-Entrepreneurship

• Tác giả: Benjamin Williams
• Ngôn ngữ: eng
• Ký hiệu phân loại: 338.64 Size of enterprises
• Thông tin xuất bản: Washington, DC: World Bank, 2025
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 269163
• Chủ đề: 1. FEMALE ENTREPRENEURSHIP; 2. NON-PECUNIARY BENEFITS; 3. ROY MODEL; 4. SELECTION CORRECTION; 5. SURVEY NON-RESPONSE

Tóm tắt

This paper estimates the monetary and full returns to micro-entrepreneurship using a cross-section of Mexican women leveraging self-reported reservation wages. A generalized Roy model of micro-entrepreneurship choice that accounts for selection bias and non-response in earnings is estimated. The analysis exploits variation in homicide rates as an exclusion restriction to identify the average treatment-on-the-treated. The average monetary return is 4.2 percent while the average full return is 68 percent, which points to substantial non-pecuniary benefits from entrepreneurship among women. The monetary return sharply increases with years of schooling. Full returns are less steep, suggesting that non-pecuniary benefits are more salient for less educated women.