Court-ship, kinship and business: a study on the interaction between the formal and the informal institutions and its effect on entrepreneurship

IZA Journal of Labor & Development

Table 2 Probability of self employment vs wage employment

	(1)	(2)	(3)	(4)	(5)
IN*FC	-0.633**	-0.675***	-0.792***	-0.667**	-0.630**
	(0.249)	(0.255)	(0.290)	(0.260)	(0.268)
Informal Network(IN)	0.355**	0.384**	0.344**	0.334**	0.315*
	(0.148)	(0.152)	(0.172)	(0.156)	(0.162)
Formal Court(FC)	0.031	0.043	0.095*	0.084	0.082
	(0.035)	(0.036)	(0.053)	(0.053)	(0.053)
Formal Loan Availability		-0.083	-0.072	-0.136*	-0.144**
		(0.052)	(0.067)	(0.071)	(0.07)
Loan Amount			0.001**	0.001**	0.001**
			(0.001)	(0.001)	(0.001)
Caste Association					0.027*
					(0.014)
Hindu				-0.079***	-0.079***
				(0.012)	(0.012)
High Caste				0.0671**	0.069***
				(0.023)	(0.023)
Education				0.144***	0.144***
				(0.009)	(0.009)
Constant	0.213***	0.218***	0.207***	0.170***	0.167***
	(0.019)	(0.019)	(0.031)	(0.033)	(0.033)
Observations	34,521	34,521	14,185	14,159	14,156
R-squared	0.001	0.002	0.007	0.033	0.034

Source: IHDS 2004–2005, own calculations.
Notes: Linear probability models. Standard errors in parentheses, adjusted for clustering at village level.
^*** significant at 1%; ** significant at 5%; * significant at 10%.