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Table 6 Consumer credits and formal employment probability

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

Panel A: unconditional

 

Paid employment

Paid employment

Self employed

Self employed

 

(OLS)

(IV)

(OLS)

(IV)

Consumer credits

0.0568

0.0882**

− 0.0342

− 0.0448

 

(0.0368)

(0.0382)

(0.0551)

(0.107)

Region FE

Yes

Yes

Yes

Yes

Year FE

Yes

Yes

Yes

Yes

Individual controls

Yes

Yes

Yes

Yes

Regional controls

Yes

Yes

Yes

Yes

Observations

358,480

358,480

57,190

57,190

First stage

 

− 3.765***

 

− 3.659***

  

(0.480)

 

(0.557)

F-stat

 

61.5

 

43.2

Panel B: conditional on looking for a job 1 year ago

 

Paid employment

Paid employment

Self employed

Self employed

 

(OLS)

(IV)

(OLS)

(IV)

Consumer credits

0.184*

0.290***

− 0.396

− 0.577

 

(0.0998)

(0.107)

(0.320)

(0.403)

Region FE

Yes

Yes

Yes

Yes

Year FE

Yes

Yes

Yes

Yes

Individual controls

Yes

Yes

Yes

Yes

Regional controls

Yes

Yes

Yes

Yes

Observations

32,075

32,075

1,961

1,961

First stage

 

− 3.818***

 

− 3.429***

  

(0.562)

 

(0.650)

F-stat

 

46.1

 

27.9

  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