NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Friendship at Work: Can Peer Effects Catalyze Female Entrepreneurship?

Erica Field, Seema Jayachandran, Rohini Pande, Natalia Rigol

NBER Working Paper No. 21093
Issued in April 2015
NBER Program(s):Development Economics

Does the lack of peers contribute to the observed gender gap in entrepreneurial success, and is the constraint stronger for women facing more restrictive social norms? We offered two days of business counseling to a random sample of customers of India’s largest women’s bank. A random subsample was invited to attend with a friend. The intervention had a significant immediate impact on participants’ business activity, but only if they were trained in the presence of a friend. Four months later, those trained with a friend were more likely to have taken out business loans, were less likely to be housewives, and reported increased business activity and higher household income. The positive impacts of training with a friend were stronger among women from religious or caste groups with social norms that restrict female mobility.

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Document Object Identifier (DOI): 10.3386/w21093

Published: Erica Field & Seema Jayachandran & Rohini Pande & Natalia Rigol, 2016. "Friendship at Work: Can Peer Effects Catalyze Female Entrepreneurship?," American Economic Journal: Economic Policy, American Economic Association, vol. 8(2), pages 125-53, May. citation courtesy of

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