Working Paper: NBER ID: w18538
Authors: Britta Augsburg; Ralph De Haas; Heike Harmgart; Costas Meghir
Abstract: We use an RCT to analyze the impacts of microcredit. The study population consists of loan applicants who were marginally rejected by an MFI in Bosnia. A random subset of these were offered a loan. We provide evidence of higher self-employment, increases in inventory, a reduction in the incidence of wage work and an increase in the labor supply of 16-19 year olds in the household's business. We also present some evidence of increases in profits and a reduction in consumption and savings. There is no evidence that the program increased overall household income.
Keywords: microcredit; poverty alleviation; Bosnia and Herzegovina; randomized controlled trial; self-employment
JEL Codes: D1; D12; D14; G21; H52; H53; J22; J24; O16
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Provision of microcredit (O12) | Self-employment (L26) |
| Provision of microcredit (O12) | Income from self-employment (H24) |
| Provision of microcredit (O12) | Ownership of a business (G32) |
| Provision of microcredit (O12) | Wage income (J31) |
| Provision of microcredit (O12) | Labor supply among 16-19-year-olds (J22) |
| Provision of microcredit (O12) | Household income (D19) |
| Provision of microcredit (O12) | Consumption and savings (E21) |