Economic Impact of Microcredit in an Urban Setting : The Case of Tajikistan

Abstract: This paper investigates the impact of receiving microcredit on the economic conditions of urban poor. The change in household income level between the years 2009 and 2011 was measured for a group of survey participants half of whom were microcredit beneficiaries, while the other half were not. The survey was conducted in Dushanbe, the capital city of Tajikistan. A difference-in-differences approach was used for the analysis and various other attributes that influence income such as the level of education, age and gender were taken into account in model formation. The findings indicate that microloans do not significantly affect the income level of the urbn poor in the short run.