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.
Authors
Research Fellow Yale University
Costas is a Research Fellow of the IFS and a Professor of Economics at Yale University and a Visiting Professor at University College London.
Heike Harmgart
Associate Director
Britta is an IFS Associate Director, Associate Staff at the Department of Economics at the UC and Researcher at NIHR Obesity Policy Research Unit.
Ralph De Haas
Report details
- Publisher
- NBER
Suggested citation
Augsburg, B et al. (2012). The Impacts of Microcredit: Evidence from Bosnia and Herzegovina. Cambridge, Massachusetts: NBER. Available at: https://ifs.org.uk/publications/impacts-microcredit-evidence-bosnia-and-herzegovina (accessed: 20 May 2024).
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