Social capital as a coping mechanism for seasonal deprivation: the case of the Monga in Bangladesh

The extreme hunger and deprivation that recurs every year in the lean season in northern Bangladesh, locally known as the Monga , is mainly due to the malfunctioning local labor and credit markets. Using data covering 5600 extreme poor households in the Monga -prone region, we investigate in detail...

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Veröffentlicht in:Empirical economics 2019-07, Vol.57 (1), p.239-262
Hauptverfasser: Bakshi, Rejaul K., Mallick, Debdulal, Ulubaşoğlu, Mehmet A.
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creator Bakshi, Rejaul K.
Mallick, Debdulal
Ulubaşoğlu, Mehmet A.
description The extreme hunger and deprivation that recurs every year in the lean season in northern Bangladesh, locally known as the Monga , is mainly due to the malfunctioning local labor and credit markets. Using data covering 5600 extreme poor households in the Monga -prone region, we investigate in detail the role of social capital in securing employment and obtaining informal loans. Correcting for the endogeneity of social capital by the heteroscedasticity-based method proposed by Klein and Vella (J Econom 154:154–164, 2010 ) and also by the standard IV method for a robustness check, we document that social capital plays an important role in obtaining both wage- and self-employment. We also document a weak negative effect of social capital on obtaining informal loans. We explain our results in terms of the role of horizontal and vertical components of our measures of social capital in influencing different outcomes.
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subjects Coping
Deprivation
Econometrics
Economic theory
Economic Theory/Quantitative Economics/Mathematical Methods
Economics
Economics and Finance
Finance
Households
Hunger
Insurance
Labor market
Loans
Low income groups
Management
Markets
Poverty
Prone
Robustness
Self employment
Social capital
Statistics for Business
title Social capital as a coping mechanism for seasonal deprivation: the case of the Monga in Bangladesh
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