A randomized study ('Are Women More Credit Constrained?') found no measurable difference in rate of return between those given grants and controls, but there was almost certainly a significant quality-of-life difference from modest spending on education, medicine, and small assets — so aggregate poverty measures are not the best test of microfinance's value.

factualpending

Speaker

Michael Munger

Evidence Quote

what they found was that people who got this instead of investing it spend it on a little bit of Education some medicine maybe a cow there was no measurable difference in the rate of return that they were earning but there was almost certainly a significant difference in the quality of life

Source

Mike Munger on Microfinance, Savings, and Poverty 04/18/2011EconTalk
Created: 6/17/2026, 10:29:24 AM

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