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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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    4. 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..
    5. 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.
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    7. 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.
    8. 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.
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    2. Masselus, Lise & Petrik, Christina & Ankel-Peters, Jörg, 2024. "Lost in the design space? Construct validity in the microfinance literature," Ruhr Economic Papers 1097, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. 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.
    4. Zhang, Xuecui & Chen, Lu & Liu, Xiuyan, 2025. "Does targeted poverty alleviation foster rural entrepreneurship? evidence from china’s township-level panel data," Economic Analysis and Policy, Elsevier, vol. 87(C), pages 1927-1945.
    5. Shiyu Yan & Jiao Wang & Zhineng Hu, 2023. "Assessment of the effects of targeted poverty alleviation policy on differently poverty‐stricken households: A multi‐propensity score weighting model," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1792-1833, August.

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