Self-Help Groups and Income Generation in the Informal Settlements of Nairobi



Table 5: Ability to borrow, group determinants

Dependent variable = 1 if borrow from whole group or group member

[1]_____________2

Group profits per capita(a)

-.769

(1.30)

-.853

(1.27)

Avg wealth of group members(a)

2.41

3.09

(2.72)

(2.99)

Ethnic fragmentation

-.172

.019

(.336)

(.321)

Educ. fragmentation

.654*

.792**

(.382)

(.357)

Residence fragmentation

-.102

-.087

(.236)

(.228)

Gini wealth

.497

-.103

(1.02)

(1.20)

Gini income from group

-.735**
(.375)

Gini income from grpj grp profits>0

-.266

(.423)

Gini income from grpj grp profits60

-1.04**

(.453)

No. obs.

278

278

R2

.20

.21

Predicted P

.67

.67

Observed P

.62

.62__________

Notes:* denotes significance at the 10 percent level, ** at the 5 percent level.

Marginal probit coe‰ients calculated at the means. Standard error in parenthesis are
corrected for heteroskedasticity and clustering of the residuals at the group level.

(a) Coe‰ients and standard errors multiplied by 10,000.

Controls include all those listed in column 2 of table 4.

28



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