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. (JEL C93, G21, I38, J23, L25, P34, P36)
Augsburg, Britta, Ralph De Haas, Heike Harmgart, and Costas Meghir.
"The Impacts of Microcredit: Evidence from Bosnia and Herzegovina."
American Economic Journal: Applied Economics,
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
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Socialist Institutions and Their Transitions: Financial Economics
Socialist Institutions and Their Transitions: Consumer Economics; Health; Education and Training: Welfare, Income, Wealth, and Poverty