Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/93061
Authors: 
Augsburg, Britta
de Haas, Ralph
Harmgart, Heike
Meghir, Costas
Year of Publication: 
2014
Series/Report no.: 
WZB Discussion Paper SP II 2014-304
Abstract: 
We use a randomised controlled trial (RCT) to analyse the impact of microcredit on poverty reduction in Bosnia and Herzegovina. The study population are loan appli-cants that would normally have just been rejected based on regular screening. We find that access to credit allowed borrowers to start and expand small-scale busi-nesses. Households that already had a business and where the borrower had more education, ran down their savings, presumably to complement the loan and to achieve the minimum amount necessary to expand their business. In less-educated households, however, consumption went down. A key new result is that there was a substantial increase in the labour supply of young adults (16-19 year olds). This was accompanied by a reduction in school attendance.
Subjects: 
microfinance
liquidity constraints
human capital
randomised controlled trial
JEL: 
O16
G21
D21
I32
Document Type: 
Working Paper

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