We report results from a randomized evaluation of a microcredit program introduced in rural areas of Morocco in 2006. Thirteen percent of the households in treatment villages took a loan, and none in control villages did. Among households identified as more likely to borrow, microcredit access led to a significant rise in investment in assets used for self-employment activities, and an increase in profit, but also to a reduction in income from casual labor. Overall there was no gain in income or consumption. We find suggestive evidence that these results are mainly driven by effects on borrowers, rather than by externalities. (JEL D14, G21, J23, O12, O16, O18)
Crépon, Bruno, Florencia Devoto, Esther Duflo, and William Parienté.
"Estimating the Impact of Microcredit on Those Who Take It Up: Evidence from a Randomized Experiment in Morocco."
American Economic Journal: Applied Economics,
Household Saving; Personal Finance
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Microeconomic Analyses of Economic Development
Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure