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 3 Probability of self employment vs wage employment & unemployment

	(1)	(2)	(3)	(4)	(5)
IN*FC	-0.596**	-0.630***	-0.798***	-0.688***	-0.652**
	(0.230)	(0.237)	(0.275)	(0.251)	(0.260)
Informal Network(IN)	0.355***	0.379***	0.354**	0.350**	0.333**
	(0.137)	(0.141)	(0.164)	(0.151)	(0.157)
Formal Court(FC)	0.031	0.041	0.102*	0.092*	0.091*
	(0.033)	(0.035)	(0.052)	(0.051)	(0.052)
Formal Loan Availability		-0.071	-0.081	-0.143**	-0.151**
		(0.051)	(0.066)	(0.071)	(0.069)
Loan Amount			0.001**	0.001***	0.001***
			(0.001)	(0.001)	(0.001)
Caste Association					0.028**
					(0.014)
Hindu				-0.071***	-0.071***
				(0.012)	(0.012)
High Caste				0.059***	0.061***
				(0.022)	(0.022)
Education				0.139***	0.139***
				(0.009)	(0.009)
Constant	0.196***	0.201***	0.195***	0.155***	0.152***
	(0.018)	(0.019)	(0.031)	(0.032)	(0.033)
Observations	36,837	14,737	14,708	14,704
R-squared	0.002	0.007	0.031	0.031

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%.