Evidence in Labor Market Policies and Implications for Brazil: Microcredit

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Peer Reviewed icon Peer Reviewed
Date issued
Sep 2024
Subject
Microfinance;
Job Creation;
Labor;
Bank Loan;
Women;
Rating;
Small Business;
Entrepreneurship;
Investment;
Interest Rate
JEL code
J01 - Labor Economics: General;
G01 - Financial Crises;
G21 - Banks • Depository Institutions • Micro Finance Institutions • Mortgages
Country
Brazil;
Brazil
Category
Catalogs and Brochures
This publication, co-authored by JOI Brazil, a J-PAL LAC initiative, and the Inter-American Development Bank analyzes the available evidence on microcredit programs and discusses their implications for public policy formulation in Brazil. Microcredit programs can be a tool to help entrepreneurs overcome financial constraints by providing access to small loans aimed at fostering growth and alleviating poverty through increased income-generating opportunities. However, despite the global popularity of these programs, evaluations in middle- and low-income countries indicate that the provision of microcredit has not always led to significant impacts on the income and consumption of their beneficiaries, nor has it consistently promoted high-return investments. Given this, it is essential to identify the most relevant characteristics of successful programs.
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