CREB - Center for Research in Economics and Business

Pressures from peers and spouses and self-control problems as constraints to microenterprise growth: Experimental evidence from Pakistan

Project members:
Farah Said, Lahore School of Economics
Uzma Afzal, Lahore School of Economics/Nottingham University
Marcel Fafchamps, Stanford
Giovanna d'Adda, University of Milan

They are working on a research that assesses the role of self-control problems and peer pressures on take-up and use of a financial product by female micro-entrepreneurs in Pakistan by combining laboratory and field experiments. The project received International Growth Centre (IGC) funding in March 2015 and experimental sessions were carried out in Chakwal in April-May 2015. A second round of experiments was conducted in April 2017. Results indicate that female involvement in household decision making is decreasing in the importance of the decision, a. Authors find no evidence that women have pent up demand for agency. Instead, women are less willing to pay for agency when facing an unknown man. This evidence suggests that women in the study population have internalized gender norms, and that these norms regulate interactions between genders most strongly outside of the household.

View Centre for Economic Policy Research Discussion Paper No. 11464
View IGC project page