The impact of micro-credit on employment: evidence from Bangladesh and Pakistan

Azhar Khan (), Twyeafur Rahman () and Robert Wright ()
Additional contact information
Azhar Khan: Department of Economics, University of Strathclyde
Twyeafur Rahman: Department of Economics, University of Strathclyde

No 1610, Working Papers from University of Strathclyde Business School, Department of Economics

Abstract: This paper examines the impact of micro-credit on employment. Household-level data was collected, following a quasi-experimental design, in Bangladesh and Pakistan. Three borrower groups are compared: Current borrowers; Pipeline borrowers and Non-borrowers. Pipeline borrowers are included to control for self-selection effects. It is argued that microcredit causes a substitution of employment away from employment-for-pay to self-employment. Therefore, the effect on total employment is ambiguous. OLS and fixed effects regression are used to examine separately self-employment and employment-for-pay between three groups of borrowers. For Pakistan, there is no evidence that micro-credit effects employment. However, for Bangladesh, there is robust evidence consistent with this hypothesis.

Keywords: Micro-credit; self-employment (search for similar items in EconPapers)
JEL-codes: G21 J22 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2016-07
New Economics Papers: this item is included in nep-dev and nep-mfd
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published

Downloads: (external link)
http://www.strath.ac.uk/media/1newwebsite/departme ... s/16-10_combined.pdf (application/pdf)

Related works:
Working Paper: The Impact of Micro-Credit on Employment: Evidence from Bangladesh and Pakistan (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:str:wpaper:1610

Access Statistics for this paper

More papers in Working Papers from University of Strathclyde Business School, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Kirsty Hall ().