The Effects of the MASAF III Public Works Program on the Likelihood of Owning a Household Enterprise in Malawi
Brauw, Alan De
This study estimates the indirect effects of the MASAF III Public Works Program (PWP) on the likelihood of a household to run a business in Malawi. To do this, the study uses crosssectional data from the IHS3 nationally representative survey and a probability model with entropy balancing weights to correct for systematic differences between the treatment and control samples. The results indicate that while MASAF does not seem to be related to the probability of owning a small business. Still, the MASAF PWP has a positive significant relationship with the likelihood of owning a large business. This is consistent with the initial hypothesis that large businesses that have higher fixed and variable costs might be moredependent on additional local aggregate demand created by the MASAF PWP. Hence, this study contributes to the relatively scarce research about the effects of PWPs on self-employment. It also suggests topics about future studies of the MASAF PWP series.
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