Neighborhood social networks and female self-employment earnings in Taiwan

Abstract

Using the sample of Taiwanese female self-employed workers from the Taiwan Women and Family Survey (TWFS) conducted in 1989, this article explores neighborhood social networks and female self-employment earnings. The evidence from linear regression and endogenous treatment effect models suggests that an individual’s past provision of personalized assistance to adjacent neighbors significantly increases current self-employment earnings, with corrections for self-selection into network participation. An individual’s past voluntary contributions to community organizational activities also significantly increase current earnings, both with and without corrections for self-selection. However, there are negative self-selections into both cooperative neighborhood networks and community organizational activities in the sense that female self-employed workers with high earnings capacity are less likely to choose to participate in these types of social networks.