Overlooked benefits of consumer credit growth: impact on formal employment

Table 10 Consumer credits and formal employment probability, by regions

	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) 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