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The impact of microcredit in France: which evolution for the beneficiaries?

Publication Papers

In this paper, we investigate the evolution of the beneficiaries of microcredit in France and of the role of microcredit in this evolution. Our results reveal a contrast between perception and economic reality. It appears a strong psychological impact of microcredit but low economic spinoffs. We find indeed an overall improvement of the professional situation of beneficiaries, but highlight the precariousness of jobs held and the low incomes. We additionally find that the improvements are stronger among the beneficiaries of the personal loan compared to the professional loan beneficiaries and we show that this difference is mainly due to the objects funded and to the difference between paid-employment and self-employment.