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We use data from a randomized controlled trial conducted in 2003–2006 in rural Amhara and Oromiya (Ethiopia) to study the impacts of increasing access to microfinance on a number of socioeconomic outcomes, including income from agriculture, animal husbandry, nonfarm self-employment, labor supply, schooling and indicators of women's empowerment. We document that despite substantial increases in borrowing in areas assigned to treatment the null of no impact cannot be rejected for a large majority of outcomes. (JEL G21, I20, J13, J16, O13, O16, O18)
Tarozzi et al. (Thu,) studied this question.
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