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MDGs and Microcredit: An Empirical Evaluation for Latin American Countries

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  • Ricardo Bebczuk

    () (Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) - FCE - UNLP; Washington University in St. Louis)

  • Francisco Haimovich

    (Universidad de San Andrés)

Abstract

This study uses for the first time household survey data from a number of Latin American countries to investigate the degree and effects of the access to credit on the income and education of poor households. With this goal in mind, multivariate regressions are run to estimate the impact of the credit to the poor on their labor income and on the probability of their children to stay at both primary and secondary school. Afterwards, based on these results, alternative credit policies are simulated. Much in line with the available microcredit evidence, the study provides mixed results: while no negative effects are identified, positive and significant loadings are found in several, but not all cases. The simulation exercises support the claim that microcredit might be a relatively powerful but still limited tool for meeting the MDGs.

Suggested Citation

  • Ricardo Bebczuk & Francisco Haimovich, 2007. "MDGs and Microcredit: An Empirical Evaluation for Latin American Countries," CEDLAS, Working Papers 0048, CEDLAS, Universidad Nacional de La Plata.
  • Handle: RePEc:dls:wpaper:0048
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    Cited by:

    1. Toshio Kondo & Aniceto Orbeta Jr. & Clarence Dingcong & Christine Infantado, 2008. "Impact of Microfinance on Rural Households in the Philippines," Development Economics Working Papers 22639, East Asian Bureau of Economic Research.
    2. Walter Sosa Escudero & Anil K. Bera, 2008. "Tests for Unbalanced Error Component Models Under Local Misspecication," CEDLAS, Working Papers 0065, CEDLAS, Universidad Nacional de La Plata.
    3. María Noelia Garbero, 2012. "Un análisis de los efectos de las restricciones de liquidez en la acumulación de capital humano: Evidencia para Nicaragua," CEDLAS, Working Papers 0136, CEDLAS, Universidad Nacional de La Plata.
    4. Diego Battiston & Francisco Franchetti, 2008. "Inequality in Health Coverage, Empirical Analysis with Microdata for Argentina 2006," CEDLAS, Working Papers 0063, CEDLAS, Universidad Nacional de La Plata.
    5. Kasat, Puja, 2010. "Innovative Approaches to Developmental Microfinance in India," MPRA Paper 22238, University Library of Munich, Germany.
    6. repec:afe:journl:v:20:y:2018:i:2:p:21-33 is not listed on IDEAS
    7. Ricardo N. Bebczuk, 2008. "Financial Inclusion in Latin America and the Caribbean: Review and Lessons," CEDLAS, Working Papers 0068, CEDLAS, Universidad Nacional de La Plata.
    8. Mariana Marchionni & Germán Bet & Ana Pacheco, 2007. "Empleo, Educación y Entorno Social de los Jóvenes: Una Nueva Fuente de Información," CEDLAS, Working Papers 0061, CEDLAS, Universidad Nacional de La Plata.
    9. Ricardo Bebczuk & Leonardo Gasparini & Noelia Garbero & Julian Amendolaggine, 2015. "Understanding the Determinants of Household Saving: Micro Evidence for Latin America," CEDLAS, Working Papers 0189, CEDLAS, Universidad Nacional de La Plata.
    10. Paula Giovagnoli, 2007. "Failures in school progression," CEDLAS, Working Papers 0050, CEDLAS, Universidad Nacional de La Plata.
    11. Ricardo Bebczuk, 2009. "SME Access to Credit in Guatemala and Nicaragua: Challenging Conventional Wisdom with New Evidence," CEDLAS, Working Papers 0080, CEDLAS, Universidad Nacional de La Plata.
    12. Amit Kundu & Suranjana Mitra, 2010. "Group Lending Scheme Operating Through Primary Agricultural Credit Society: A Critical Assessment," The IUP Journal of Managerial Economics, IUP Publications, vol. 0(3), pages 61-77, August.
    13. Ricardo N. Bebczuk, 2008. "Dolarización y Pobreza en Ecuador," CEDLAS, Working Papers 0066, CEDLAS, Universidad Nacional de La Plata.
    14. Leopoldo Tornarolli & Adriana Conconi, 2007. "Informalidad y Movilidad Laboral: Un Análisis Empírico para Argentina," CEDLAS, Working Papers 0059, CEDLAS, Universidad Nacional de La Plata.
    15. María Noelia Garbero, 2012. "Efectos de las restricciones de liquidez en la acumulación de capital humano: evidencia para Nicaragua," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0, pages 53-95, January-D.

    More about this item

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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