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A good mix against ultra‐poverty? Evidence from a Randomized Controlled Trial (RCT) in Bangladesh

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  • Atiya Rahman
  • Anindita Bhattacharjee
  • Narayan Das

Abstract

Existing evidence shows that programs that provide grants to productive assets along with training to very poor women increase labor supply, earnings, and consumption. In contrast, evidence on the effect of microcredit on these outcomes is mixed. In this paper, we examine the effect of a hybrid of the two approaches—credit and grant—on the livelihoods of the ultra‐poor in Bangladesh. A randomized evaluation of the hybrid intervention shows that it increases labor supply of working‐age women, household income, productive assets, savings, and consumption expenditures. The benefit–cost ratio of the intervention is estimated to be 8.47.

Suggested Citation

  • Atiya Rahman & Anindita Bhattacharjee & Narayan Das, 2021. "A good mix against ultra‐poverty? Evidence from a Randomized Controlled Trial (RCT) in Bangladesh," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 2052-2083, November.
    • Handle: RePEc:bla:rdevec:v:25:y:2021:i:4:p:2052-2083
    DOI: 10.1111/rode.12809
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    References listed on IDEAS

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    1. Christopher Blattman & Eric P. Green & Julian Jamison & M. Christian Lehmann & Jeannie Annan, 2016. "The Returns to Microenterprise Support among the Ultrapoor: A Field Experiment in Postwar Uganda," American Economic Journal: Applied Economics, American Economic Association, vol. 8(2), pages 35-64, April.
    2. Oriana Bandiera & Robin Burgess & Narayan Das & Selim Gulesci & Imran Rasul & Munshi Sulaiman, 2017. "Labor Markets and Poverty in Village Economies," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(2), pages 811-870.
    3. Argent, Jonathan & Augsburg, Britta & Rasul, Imran, 2014. "Livestock asset transfers with and without training: Evidence from Rwanda," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 19-39.
    4. Abhijit Banerjee & Esther Duflo & Rachel Glennerster & Cynthia Kinnan, 2015. "The Miracle of Microfinance? Evidence from a Randomized Evaluation," American Economic Journal: Applied Economics, American Economic Association, vol. 7(1), pages 22-53, January.
    5. Abhijit Banerjee & Dean Karlan & Jonathan Zinman, 2015. "Six Randomized Evaluations of Microcredit: Introduction and Further Steps," American Economic Journal: Applied Economics, American Economic Association, vol. 7(1), pages 1-21, January.
    6. repec:pri:rpdevs:morduch_microfinance_poor is not listed on IDEAS
    7. Jonathan Morduch, 1998. "Does Microfinance Really Help the Poor? New Evidence from Flagship Programs in Bangladesh," Working Papers 198, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    8. Rahman, Atiur & Razzaque, Abdur, 2000. "On Reaching the Hardcore Poor: Some Evidence on Social Exclusion in NGO Programmes," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 26(1), pages 1-35, March.
    9. Mark M. Pitt & Shahidur R. Khandker, 1998. "The Impact of Group-Based Credit Programs on Poor Households in Bangladesh: Does the Gender of Participants Matter?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 958-996, October.
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    Cited by:

    1. Atiya Rahman & Anindita Bhattacharjee & Rafia Nisat & Narayan Das, 2023. "Graduation approach to poverty reduction in the humanitarian context: Evidence from Bangladesh," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(6), pages 1287-1317, August.

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