How access to credit affects selfemployment: Differences by gender during india's rural banking reform

Abstract

Household survey data for 1983-2000 from India's National Sample Survey Organisation are used to examine the impact of credit on self-employment among men and women in rural labour households. Results indicate that credit access encourages women's selfemployment as own-account workers and employers, while it discourages men's self-employment as unpaid family workers. Ownership of land, a key form of collateral, also serves as a strong predictor of self-employment. Among the lower castes in India, self-employment is less likely for scheduled castes prone to wage activity, but more likely for scheduled tribes prone to entrepreneurial work. © 2011 Taylor & Francis.