The Impacts of Microcredit: Evidence from Bosnia and Herzegovina
American Economic Journal: Applied Economics (2015), 7(1), 183-203.
21 Pages Posted: 10 Dec 2013 Last revised: 4 May 2015
Date Written: 2015
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: Microfinance; liquidity constraints; human capital; randomized controlled trial
JEL Classification: O16, G21, D21, I32
Suggested Citation: Suggested Citation