Abstract
Using a mixed-methods strategy that combines quantitative data from Indonesia’s Survey on Financial Inclusion and Access (SOFIA) and qualitative data from fieldwork in remote rural East Java, we investigate the roles of different sources of credit (informal, semi-formal and formal) and gender on informal self-employment (ISE) in agriculture, commerce and services as an economic capability. We find that the association between semi-formal credit and ISE in commerce and services is positive for women but insignificant for men. Formal credit is positively associated with ISE in agriculture and commerce among men, but only in commerce among women. The disaggregation based on financial decision making suggests that, when men who receive credit allocate their money in consultation with their spouses, instead of alone, they are more likely to engage in ISE. Women who receive credit also benefit from consultation with their spouse, but their choice making capacities remain restricted along gender norms, which affect the judgment of whether their participation in ISE can be considered an economic capability.
Original language | English |
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ISBN (Electronic) | 978-1-912607-39-6 |
Publication status | Published - 1 Nov 2024 |
Keywords
- Credit
- Microfinance,
- Indonesia
- Informal economy,
- self-employment,
Research Beacons, Institutes and Platforms
- Global inequalities