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Lunchtime Talk

Is Micro Business Worth it?

Micro-entrepreneurship may provide low individual returns, but it may also support households’ livelihoods and offer them a means to cope with economic vulnerability. Its evaluation should therefore take into account both context and heterogeneity. Using a four-wave panel of 9,157 Indonesian households, this study offers a quantile estimation of the impact of micro-entrepreneurship on four complementary measures of household-level welfare – income, consumption, household, and total assets. It demonstrates substantial positive but decreasing effects on the four measures, with the highest relative returns for the poorest households. For this category, micro-entrepreneurship primarily provides returns in the form of income, translating into higher relative consumption, and more importantly, into greater relative asset accumulation.
Seminar Room 3-5 ,
Manasseh Meyer,
Lee Kuan Yew School of Public Policy,
469E Bukit Timah Road,
Singapore 259772
Tue 2 February 2016
12:15 PM - 01:30 PM