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Table 7 Outstanding credit card debts 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)
Credit cards 0.0343 0.0554** − 0.0135 − 0.0286
  (0.0218) (0.0246) (0.0465) (0.0680)
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   − 6.001***   − 5.733***
   (0.782)   (0.884)
F-stat   58.8   42
Panel B: conditional on looking for a job 1 year ago
  Paid employment Paid employment Self employed Self employed
  (OLS) (IV) (OLS) (IV)
Credit cards 0.133** 0.187*** − 0.302 − 0.369
  (0.0605) (0.0660) (0.198) (0.267)
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   − 5.930***   − 5.357***
   (0.887)   (1.000)
F-stat   44.7   28.7
  1. (1) Robust standard errors are clustered at the household and Nuts2 levels, and ***, **, and * refer to 1, 5, and 10% significance levels. (2) Credit card debts 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