Abstract
Abstract. This paper seeks to evaluate effects of micro‐credit projects on the poor. We utilize data that we collected in Sichuan Province in 1999 to investigate whether micro‐credit projects have targeted the poor and whether participation in the micro‐credit project increases the likelihood of migration and switching to off‐farm jobs. We find that, although the micro‐credit programs did not help increase assets of the participants, it did help to move one or more of their members into an off‐farm job. Our findings indicate that there is a great deal of benefit in supporting micro‐credit programs.
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