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Faculty Research Working Paper Series
Rohini Pande
Mohamed Kamal Professor of Public Policy
phone: (617)384-5267
Friendship at Work: Can Peer Effects Catalyze Female Entrepreneurship?
Field, Erica, Seema Jayachandran, Rohini Pande, and Natalia Rigol. "Friendship at Work: Can Peer Effects Catalyze Female Entrepreneurship?" HKS Faculty Research Working Paper Series RWP15-019, April 2015.
Abstract
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 sub-sample 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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