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

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Macours, Karen
dc.contributor.author
Premand, Patrick
dc.contributor.author
Vakis, Renos
dc.date.accessioned
2013-04-11T20:46:40Z
dc.date.available
2013-04-11T20:46:40Z
dc.date.issued
2013-03
dc.date.lastModified
2021-04-23T14:03:07Z
dc.description.abstract
Interventions 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.identifier
http://documents.worldbank.org/curated/en/2013/03/17483338/demand-versus-returns-pro-poor-targeting-business-grants-vocational-skills-training
dc.identifier.uri
http://hdl.handle.net/10986/13173
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 6389
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
ACCESS TO MARKETS
dc.subject
ACCOUNTING
dc.subject
AGE GROUPS
dc.subject
AGRICULTURAL ACTIVITIES
dc.subject
AGRICULTURAL ACTIVITY
dc.subject
AGRICULTURAL INCOME
dc.subject
AGRICULTURAL SELF-EMPLOYMENT
dc.subject
ATTRITION
dc.subject
BANKS
dc.subject
BUSINESS PLAN
dc.subject
BUSINESS TRAINING
dc.subject
CHARTER SCHOOL
dc.subject
CHARTER SCHOOLS
dc.subject
COGNITIVE DEVELOPMENT
dc.subject
CREDIT ACCESS
dc.subject
DATA COLLECTION
dc.subject
DEMAND FOR CREDIT
dc.subject
DISPLACEMENT
dc.subject
DIVERSIFICATION
dc.subject
DWELLING
dc.subject
DWELLINGS
dc.subject
EARLY CHILDHOOD
dc.subject
EARNINGS
dc.subject
ECONOMIC ACTIVITIES
dc.subject
ECONOMICS
dc.subject
ELIGIBILITY CRITERIA
dc.subject
ELIGIBILITY CRITERION
dc.subject
EMPLOYMENT EXPERIENCE
dc.subject
ENDOWMENTS
dc.subject
ENROLLMENT
dc.subject
ENTREPRENEURS
dc.subject
EXCLUSION
dc.subject
EXPENDITURE
dc.subject
EXPENDITURES
dc.subject
EXPERIMENTAL DESIGN
dc.subject
FEMALE
dc.subject
FEMALE ENTERPRISE
dc.subject
FINANCIAL CAPITAL
dc.subject
FINANCIAL LITERACY
dc.subject
FINANCIAL SUPPORT
dc.subject
FORMAL CREDIT
dc.subject
GENDER
dc.subject
GROSS INCOME
dc.subject
HOUSEHOLD WELFARE
dc.subject
HOUSEHOLDS
dc.subject
HOUSING
dc.subject
IMPACT EVALUATION
dc.subject
INFORMAL CREDIT
dc.subject
INSURANCE
dc.subject
INTERNATIONAL BANK
dc.subject
INTERVENTION
dc.subject
INTERVENTIONS
dc.subject
LABOR ECONOMICS
dc.subject
LABOR MARKET
dc.subject
LACK OF INFORMATION
dc.subject
LEARNING
dc.subject
LIVING STANDARDS
dc.subject
LSMS
dc.subject
MICRO-BUSINESS
dc.subject
MICRO-FINANCE
dc.subject
MICROCREDIT
dc.subject
MICROFINANCE
dc.subject
OPPORTUNITY COSTS
dc.subject
POLITICAL ECONOMY
dc.subject
POVERTY REDUCTION
dc.subject
PRIMARY CAREGIVERS
dc.subject
PRIMARY EDUCATION
dc.subject
PRIMARY SCHOOL
dc.subject
PRODUCTIVITY
dc.subject
PROGRAM EFFECTIVENESS
dc.subject
PROGRAM IMPACTS
dc.subject
REDUCING POVERTY
dc.subject
REGULAR ATTENDANCE
dc.subject
RETURNS TO EDUCATION
dc.subject
RISK MANAGEMENT
dc.subject
RURAL AREAS
dc.subject
RURAL COMMUNITIES
dc.subject
SAVINGS
dc.subject
SCHOLARSHIP
dc.subject
SCHOOLING
dc.subject
SELECTION BIAS
dc.subject
SELF EMPLOYMENT
dc.subject
SELF-EMPLOYMENT
dc.subject
SKILLS TRAINING
dc.subject
SMALL BUSINESS
dc.subject
SMALL BUSINESS DEVELOPMENT
dc.subject
SMALL BUSINESS OWNERS
dc.subject
START-UP
dc.subject
TARGETING
dc.subject
TEACHERS
dc.subject
TEACHING
dc.subject
TECHNICAL ASSISTANCE
dc.subject
TEMPORARY EMPLOYMENT
dc.subject
TRAINING PROGRAMS
dc.subject
TREATMENT GROUPS
dc.subject
VOCATIONAL SKILLS
dc.subject
VOCATIONAL TRAINING
dc.subject
WAGES
dc.subject
WOMAN
dc.subject
YOUTH
dc.title
Demand versus Returns? Pro-Poor Targeting of Business Grants and Vocational Skills Training
en
okr.crosscuttingsolutionarea
Public-Private Partnerships
okr.date.disclosure
2013-03-01
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.doctype
Publications & Research
okr.docurl
http://documents.worldbank.org/curated/en/2013/03/17483338/demand-versus-returns-pro-poor-targeting-business-grants-vocational-skills-training
okr.globalpractice
Education
okr.globalpractice
Poverty
okr.globalpractice
Trade and Competitiveness
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-6389
okr.identifier.externaldocumentum
000158349_20130325142803
okr.identifier.internaldocumentum
17483338
okr.identifier.report
WPS6389
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/03/25/000158349_20130325142803/Rendered/PDF/wps6389.pdf
en
okr.region.administrative
Latin America & Caribbean
okr.region.country
Nicaragua
okr.topic
Vocational Education and Technical Training
okr.topic
Poverty Reduction :: Conditional Cash Transfers
okr.topic
Private Sector Development :: Business in Development
okr.topic
Poverty Reduction :: Poverty Reduction Strategies
okr.topic
Poverty Reduction :: Pro-Poor Growth
okr.topic
Education
okr.unit
Development Research Group (DECRG); Poverty, Gender and Equity Unit, Latin America and the Caribbean Region
okr.volume
1 of 1

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