Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/305494 
Year of Publication: 
2024
Series/Report no.: 
EGC Discussion Papers No. 1107
Publisher: 
Yale University, Economic Growth Center, New Haven, CT
Abstract: 
Poor entrepreneurs must frequently choose between business investment and children's education. To examine this trade-off, we exploit experimental variation in short-run microenterprise growth among a sample of Indian households and track children's education and business outcomes over eleven years. Treated households, who experience higher initial microenterprise growth, invest more in education and are one-third more likely to send children to college. However, only literate households experience child schooling gains and their enterprises stagnate in the long-run. In contrast, illiterate treatment households experience long-run business gains but declines in children's education. Our findings suggest that microenterprise growth has the potential to reduce relative intergenerational educational mobility.
Document Type: 
Working Paper

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