Paper #1407

Title:

On the impact of microcredit: Evidence from a randomized intervention in rural Ethiopia

Authors:

Alessandro Tarozzi, Jaikishan Desai and Kristin Johnson

Date:

October 2013

Abstract:

We use data from a randomized controlled trial conducted in 2003-2006 in rural Amhara and Oromiya (Ethiopia) to study the impacts of the introduction of microfinance in treated communities. We document that borrowing increased substantially in locations where the programs started their operations, but we find mixed evidence of improvements in a number of socio-economic outcomes, including income from agriculture, animal husbandry, non-farm self-employment, schooling and indicators of women's empowerment.

Keywords:

Microcredit; Cluster Randomized Controlled Trial; Ethiopia

JEL codes:

O12, O16

Area of Research:

Labour, Public, Development and Health Economics

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