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Table 10 Consumer credits and formal employment probability, by regions

From: Overlooked benefits of consumer credit growth: impact on formal employment

  Excluding Istanbul Excluding East Subsidy region I Subsidy region II Subsidy region III Subsidy region IV
  (OLS) (OLS) (OLS) (OLS) (OLS) (OLS)
Average rate of formality 72.3 75.2 78.3 70.8 70.5 65.9
Consumer credits 0.0967 0.124*** − 0.193*** 0.877*** − 0.112 − 0.271**
  (0.0682) (0.0295) (0.0515) (0.206) (0.103) (0.128)
Region FE Yes Yes Yes Yes Yes Yes
Year FE Yes Yes Yes Yes Yes Yes
Individual controls Yes Yes Yes Yes Yes Yes
Regional controls Yes Yes Yes Yes Yes Yes
Observations 304,225 311,468 157,215 51,977 89,387 59,901
  (IV) (IV) (IV) (IV) (IV) (IV)
Consumer credits 0.277** 0.133*** 0.517 0.712** 0.113 − 0.0144
  (0.111) (0.0340) (3.954) (0.279) (0.347) (0.317)
Region FE Yes Yes Yes Yes Yes Yes
Year FE Yes Yes Yes Yes Yes Yes
Individual controls Yes Yes Yes Yes Yes Yes
Regional controls Yes Yes Yes Yes Yes Yes
Observations 304,225 311,468 157,215 51,977 89,387 59,901
First Stage − 2.056*** − 4.080*** 0.392 − 7.202*** − 1.682** 1.858
  (0.585) (0.468) (2.232) (0.263) (0.684) (1.214)
F-stat 12.33 75.9 0.03 750 6.05 2.34
  1. (1) Robust standard errors are clustered at the household and Nuts2 levels, and ***, **, and * refer to 1, 5, and 10% significance levels. (2) Consumer credits are expressed in real per capita terms and are in logs. (3) Regional controls include real GDP per capita (in logs.), average real monthly earnings (in logs.) unemployment rate, average education, average firm size, net migration rate, and urban population (%) at Nuts2 level. (4) Individual controls include experience, experience squared, dummy variables for gender, education, age, civil status, part-time versus full-time employment status, temporary versus permanent employment status, firm size, urban-rural, sector (Nace Rev2.), and occupations (Isco 88). (5) Population weights are used