Article ID Journal Published Year Pages File Type
7395633 World Development 2013 10 Pages PDF
Abstract
Microcredit and small and medium enterprise (SME) finance are often pitched as alternative strategies to create employment opportunities in low-income communities. So far, though, little is known about how employment patterns compare. We integrate evidence from three surveys to show that, compared to Bangladeshi microcredit customers, typical SME employees in Bangladesh have more education and professional skills, and live in households that are notably less poor. SME jobs also require long work weeks, clashing with family responsibilities. The evidence from Bangladesh rejects the idea that SME finance more efficiently creates jobs for the population currently served by microcredit.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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