Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/161206
Authors: 
Brudevold-Newman, Andrew
Honorati, Maddalena
Jakiela, Pamela
Ozier, Owen
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers 10583
Abstract: 
We conducted a randomized evaluation of two labor market interventions targeted to young women aged 18 to 19 in three of Nairobi's poorest neighborhoods. One treatment offered participants a bundled intervention designed to simultaneously relieve credit and human capital constraints; a second treatment provided women with an unrestricted cash grant, but no training or other support. Both interventions had economically large and statistically significant impacts on income over the medium-term (7 to 10 months after the end of the interventions), but these impacts dissipated in the second year after treatment. Our results are consistent with a model in which savings constraints prevent women from smoothing consumption after receiving large transfers even in the absence of credit constraints, and when participants have no intention of remaining in entrepreneurship. We also show that participants hold remarkably accurate beliefs about the impacts of the treatments on occupational choice.
Subjects: 
youth unemployment
microenterprises
entrepreneurship
credit constraints
cash grants
training
Africa
gender
JEL: 
J24
M53
O12
Document Type: 
Working Paper

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