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

Miguel Niño-Zarazúa ()

MPRA Paper from University Library of Munich, Germany

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.

Keywords: microcredit; labor; children´s schooling; Mexico (search for similar items in EconPapers)
JEL-codes: O18 O17 C24 O16 C81 C25 (search for similar items in EconPapers)
Date: 2008-09-28
New Economics Papers: this item is included in nep-hrm, nep-lab and nep-mfd
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:10814

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