Returns to Micro-Entrepreneurship in an Emerging Economy: A Quantile Study of Entrepreneurial Indonesian Households’ Welfare

  • V. Vial and J. Hanoteau (2015). World Development (Elsevier Ltd), 142-157
  • Abstract: Presenting low individual returns, but providing households with livelihoods and means to cope with economic vulnerability, micro-entrepreneurship's evaluation should include both context and heterogeneity. Using a four-wave panel of 9,157 Indonesian households, this study proposes a quantile estimation of micro-entrepreneurship's effects on four household-level complementary measures of welfare - income, consumption, household, and total assets. It evidences substantial positive but decreasing effects on the four measures, with the highest relative returns for the poorest. For this category, micro-entrepreneurship primarily provides returns in the form of income, translating into higher relative consumption, but more importantly, into a greater relative assets accumulation. 2015 Elsevier Ltd.
  • Theme: Growth and performance, Household/Family businesses
  • Keywords: Economic welfare, Indonesia, Micro-entrepreneurship, Quantile regression, Self-employment, developing world, entrepreneur, household income, microenterprise, regression analysis, self employment, welfare economics
  • Reference type: Journal Article
  • Geographic location: Indonesia, Asia, Global South,
  • Quality:
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