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.
Authors
![Costas Meghir](/sites/default/files/styles/square_desktop/public/2022-07/Costas%20Meghir.jpg?itok=_N-Qaly5)
Research Fellow Yale University
Costas is a Research Fellow of the IFS and a Professor of Economics at Yale University and a Visiting Professor at University College London.
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
Heike Harmgart
![Britta Augsburg](/sites/default/files/styles/square_desktop/public/2022-06/Britta_Augsburg.jpg?itok=xID4yUz7)
Associate Director
Britta is an IFS Associate Director, Associate Staff at the Department of Economics at the UC and Researcher at NIHR Obesity Policy Research Unit.
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
Ralph De Haas
Report details
- Publisher
- NBER
Suggested citation
Augsburg, B et al. (2012). The Impacts of Microcredit: Evidence from Bosnia and Herzegovina. Cambridge, Massachusetts: NBER. Available at: https://ifs.org.uk/publications/impacts-microcredit-evidence-bosnia-and-herzegovina (accessed: 30 June 2024).
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