Wider impacts of microcredit: evidence from labor and human capital in urban Mexico
This paper presents an estimation of the impacts of microcredit on labor and human capital following a quasi-experiment specifically designed to control for endogeneity and selection bias in the context of urban Mexico. We find important indirect trickle-down effects of credit through labor expenditure that benefit poor laborers; however, these effects were only observed when loan-supported enterprising households reached a level of income well above the poverty line. We also find significant, although small impacts of credit on children´s schooling that could be potentially reinforced by improvements in lending technology, school grants and additional ex-ante preventive and ex-post protective riskcoping products.
|Date of creation:||28 Sep 2008|
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- Pitt, M.M. & Khandker, S.R., 1996. "Household and Intrahousehold Impact of the Grameen Bank and Similar Targeted Credit Programs in Bangladesh," World Bank - Discussion Papers 320, World Bank.
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Elsevier, vol. 40(2), pages 219-239, April.
- Ljungqvist, L., 1990. "Economic Underdevelopment: The Case Of A Missing Market For Human Capital," Working papers 90-20, Wisconsin Madison - Social Systems.
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