This thesis comprises
three papers that examine a multifaceted approach to poverty alleviation
implemented in northern Kenya. The approach combines multiple interventions
with the aim of promoting entrepreneurship among ultrapoor women, and
emphasizes cash transfers, in addition to business skills training, business
mentoring and savings.
The first paper takes advantage of the randomized allocation
of beneficiaries of the program to one of three funding cycles to estimate its
impact on the welfare of beneficiaries. In the short-to-medium run
participation in the program is found to have a positive and significant effect
on income, savings, asset accumulation and food security.
The second paper looks at the impact of the program on female
empowerment, and compares survey measures of empowerment to a measure derived
from an incentivized decision making experiment. A positive impact of participation
in the program on empowerment is found when using an experimental indicator,
but not when using traditional survey measures. The experimental indicator also
better correlates with indicators of well-being that are associated with more
empowered women and is seen as a better measure of empowerment than survey
measures, in this context.
The final paper takes advantage of the exogenous assignment
of ultra-poor women to business groups to examine the effect of team
heterogeneity on an experimental measure of trust. Heterogeneity in many
characteristics is not found to affect the level of trust and trustworthiness
between business partners. However, differences in asset wealth, measured by
livestock ownership, is associated with less trust.