Publication:
Demand versus Returns? Pro-Poor Targeting of Business Grants and Vocational Skills Training

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dc.contributor.authorMacours, Karen
dc.contributor.authorPremand, Patrick
dc.contributor.authorVakis, Renos
dc.date.accessioned2013-04-11T20:46:40Z
dc.date.available2013-04-11T20:46:40Z
dc.date.issued2013-03
dc.description.abstractInterventions aimed at increasing the income generating capacity of the poor, such as vocational training, micro-finance or business grants, are widespread in the developing world. How to target such interventions is an open question. Many programs are self-targeted, but if perceived returns differ from actual returns, those self-selecting to participate may not be those for whom the program is the most effective. The authors analyze an unusual experiment with very high take-up of business grants and vocational skills training, randomly assigned among nearly all households in selected poor rural communities in Nicaragua. On average, the interventions resulted in increased participation in non-agricultural employment and higher income from related activities. The paper investigates whether targeting could have resulted in higher returns by analyzing heterogeneity in impacts by stated baseline demand, prior participation in non-agricultural activities, and a wide range of complementary asset endowments. The results reveal little heterogeneity along observed baseline characteristics. However, the poorest households are more likely to enter and have higher profits in non-agricultural self-employment, while less poor households assigned to the training have higher non-agricultural wages. This heterogeneity appears related to unobserved characteristics that are not revealed by stated baseline demand, and more difficult to target. In this context, self-targeting may reduce the poverty-reduction potential of income generating interventions, possibly because low aspirations limit the poor's ex-ante demand for productive interventions while the interventions have the potential to increase those aspirations. Overall, targeting productive interventions to poor households would not have come at the cost of reducing their effectiveness. By contrast, self-targeting would have limited poverty reduction by excluding the poorest.en
dc.identifierhttp://documents.worldbank.org/curated/en/2013/03/17483338/demand-versus-returns-pro-poor-targeting-business-grants-vocational-skills-training
dc.identifier.doi10.1596/1813-9450-6389
dc.identifier.urihttps://hdl.handle.net/10986/13173
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6389
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO MARKETS
dc.subjectACCOUNTING
dc.subjectAGE GROUPS
dc.subjectAGRICULTURAL ACTIVITIES
dc.subjectAGRICULTURAL ACTIVITY
dc.subjectAGRICULTURAL INCOME
dc.subjectAGRICULTURAL SELF-EMPLOYMENT
dc.subjectATTRITION
dc.subjectBANKS
dc.subjectBUSINESS PLAN
dc.subjectBUSINESS TRAINING
dc.subjectCHARTER SCHOOL
dc.subjectCHARTER SCHOOLS
dc.subjectCOGNITIVE DEVELOPMENT
dc.subjectCREDIT ACCESS
dc.subjectDATA COLLECTION
dc.subjectDEMAND FOR CREDIT
dc.subjectDISPLACEMENT
dc.subjectDIVERSIFICATION
dc.subjectDWELLING
dc.subjectDWELLINGS
dc.subjectEARLY CHILDHOOD
dc.subjectEARNINGS
dc.subjectECONOMIC ACTIVITIES
dc.subjectECONOMICS
dc.subjectELIGIBILITY CRITERIA
dc.subjectELIGIBILITY CRITERION
dc.subjectEMPLOYMENT EXPERIENCE
dc.subjectENDOWMENTS
dc.subjectENROLLMENT
dc.subjectENTREPRENEURS
dc.subjectEXCLUSION
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectEXPERIMENTAL DESIGN
dc.subjectFEMALE
dc.subjectFEMALE ENTERPRISE
dc.subjectFINANCIAL CAPITAL
dc.subjectFINANCIAL LITERACY
dc.subjectFINANCIAL SUPPORT
dc.subjectFORMAL CREDIT
dc.subjectGENDER
dc.subjectGROSS INCOME
dc.subjectHOUSEHOLD WELFARE
dc.subjectHOUSEHOLDS
dc.subjectHOUSING
dc.subjectIMPACT EVALUATION
dc.subjectINFORMAL CREDIT
dc.subjectINSURANCE
dc.subjectINTERNATIONAL BANK
dc.subjectINTERVENTION
dc.subjectINTERVENTIONS
dc.subjectLABOR ECONOMICS
dc.subjectLABOR MARKET
dc.subjectLACK OF INFORMATION
dc.subjectLEARNING
dc.subjectLIVING STANDARDS
dc.subjectLSMS
dc.subjectMICRO-BUSINESS
dc.subjectMICRO-FINANCE
dc.subjectMICROCREDIT
dc.subjectMICROFINANCE
dc.subjectOPPORTUNITY COSTS
dc.subjectPOLITICAL ECONOMY
dc.subjectPOVERTY REDUCTION
dc.subjectPRIMARY CAREGIVERS
dc.subjectPRIMARY EDUCATION
dc.subjectPRIMARY SCHOOL
dc.subjectPRODUCTIVITY
dc.subjectPROGRAM EFFECTIVENESS
dc.subjectPROGRAM IMPACTS
dc.subjectREDUCING POVERTY
dc.subjectREGULAR ATTENDANCE
dc.subjectRETURNS TO EDUCATION
dc.subjectRISK MANAGEMENT
dc.subjectRURAL AREAS
dc.subjectRURAL COMMUNITIES
dc.subjectSAVINGS
dc.subjectSCHOLARSHIP
dc.subjectSCHOOLING
dc.subjectSELECTION BIAS
dc.subjectSELF EMPLOYMENT
dc.subjectSELF-EMPLOYMENT
dc.subjectSKILLS TRAINING
dc.subjectSMALL BUSINESS
dc.subjectSMALL BUSINESS DEVELOPMENT
dc.subjectSMALL BUSINESS OWNERS
dc.subjectSTART-UP
dc.subjectTARGETING
dc.subjectTEACHERS
dc.subjectTEACHING
dc.subjectTECHNICAL ASSISTANCE
dc.subjectTEMPORARY EMPLOYMENT
dc.subjectTRAINING PROGRAMS
dc.subjectTREATMENT GROUPS
dc.subjectVOCATIONAL SKILLS
dc.subjectVOCATIONAL TRAINING
dc.subjectWAGES
dc.subjectWOMAN
dc.subjectYOUTH
dc.titleDemand versus Returns? Pro-Poor Targeting of Business Grants and Vocational Skills Trainingen
dspace.entity.typePublication
okr.crosscuttingsolutionareaPublic-Private Partnerships
okr.crossref.titleDemand versus Returns? Pro-Poor Targeting of Business Grants and Vocational Skills Training
okr.date.disclosure2013-03-01
okr.date.doiregistration2025-04-10T12:11:05.139344Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2013/03/17483338/demand-versus-returns-pro-poor-targeting-business-grants-vocational-skills-training
okr.globalpracticeEducation
okr.globalpracticePoverty
okr.globalpracticeTrade and Competitiveness
okr.guid117981468330302212
okr.identifier.doi10.1596/1813-9450-6389
okr.identifier.externaldocumentum000158349_20130325142803
okr.identifier.internaldocumentum17483338
okr.identifier.reportWPS6389
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/03/25/000158349_20130325142803/Rendered/PDF/wps6389.pdfen
okr.region.administrativeLatin America and Caribbean
okr.region.countryNicaragua
okr.topicVocational Education and Technical Training
okr.topicPoverty Reduction::Conditional Cash Transfers
okr.topicPrivate Sector Development::Business in Development
okr.topicPoverty Reduction::Poverty Reduction Strategies
okr.topicPoverty Reduction::Pro-Poor Growth
okr.topicEducation
okr.unitDevelopment Research Group (DECRG); Poverty, Gender and Equity Unit, Latin America and the Caribbean Region
okr.volume1 of 1
relation.isAuthorOfPublication5a231532-1560-50a9-bcf7-6e4cd6e3ec2c
relation.isAuthorOfPublicationdf9fc562-f981-533f-9b03-cceeb91e5d9c
relation.isAuthorOfPublication.latestForDiscovery5a231532-1560-50a9-bcf7-6e4cd6e3ec2c
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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