Munich Personal RePEc Archive

Wider impacts of microcredit: evidence from labor and human capital in urban Mexico

Nino-Zarazua, Miguel (2008): Wider impacts of microcredit: evidence from labor and human capital in urban Mexico.

[img]
Preview
PDF
MPRA_paper_10814.pdf

Download (292Kb) | Preview

Abstract

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.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.