Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/145180
Authors: 
Kahn, Azhar
Rahman, Twyeafur
Wright, Robert E.
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 10046
Abstract: 
This paper examines the impact of micro-credit on employment. Household-level data was collected, following a quasi-experimental design, in Bangladesh and Pakistan. Three borrower groups are compared: Current borrowers; Pipeline borrowers and Non-borrowers. Pipeline borrowers are included to control for self-selection effects. It is argued that micro-credit causes a substitution of employment away from employment-for-pay to self-employment. Therefore, the effect on total employment is ambiguous. OLS and fixed effects regression are used to examine separately self-employment and employment-for-pay between three groups of borrowers. For Pakistan, there is no evidence that micro-credit effects employment. However, for Bangladesh, there is robust evidence consistent with this hypothesis.
Subjects: 
micro-credit
poverty
self-employment
JEL: 
G21
J22
I39
Document Type: 
Working Paper

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