The productive role of social policy
Omar Rodriguez
#2022-010
This paper assesses the productive role of social policy. It analyses
the effect that participating in social policy programmes has on
business performance of enterprises in Cartagena, Colombia. To
investigate these effects, we employ an instrumental variable analysis
to account for the potential endogeneity of participation. Exploiting
the existence of a partially complied eligibility rule for Participation
in the poverty reduction programme we are able to identify the effect on
several enterprise indicators. The paper contributes to the literature
on entrepreneurship policies in developing countries from the social
policy perspective. It sheds light on the effects and potential
mechanisms that the participation on social policy schemes has on the
entrepreneurial activity of household enterprises. The results show that
complier participating entrepreneurs are more credit-oriented and work
more hours per day. No statistically significant effect is found on
profit measures.
Keywords: Social policy, poverty reduction, entrepreneurship, public policy, enterprise policy
JEL Classification: I31, I32, L26, J48, L53