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Micro-credit programs provide a two-tiered approach to poverty alleviation: credit for the purchase of capital inputs to promote self-employment and non-credit services and incentives. These non-credit aspects may be an important component of the success of micro-credit programs. This paper uses...
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correct for potential endogeneity and selection bias in the earnings function. Attempts to correct for endogeneity is made … using instrumental variables method as well as using lag values of potentially endogenous variables in the earnings model …, earnings are found to be significantly lower for female-headed firms and firms owned by socially-marginalized groups …
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