Template-Type: ReDIF-Paper 1.0
Author-Name: Bernardus F Nazar Van Doornik
Author-X-Name-First: Bernardus F Nazar
Author-X-Name-Last: Van Doornik
Author-Name: Armando Gomes
Author-X-Name-First: Armando
Author-X-Name-Last: Gomes
Author-Name: David Schoenherr
Author-X-Name-First: David 
Author-X-Name-Last: Schoenherr
Author-Name: Janis Skrastins
Author-X-Name-First: Janis
Author-X-Name-Last: Skrastins
Title: Financial access and labor market outcomes: evidence from credit lotteries
Abstract: We assess the employment and income effects of access to credit dedicated to investment in individual mobility by exploiting time-series variation in access to credit through random lotteries for participants in a group-lending mechanism in Brazil. We find that access to credit for investment in individual mobility increases formal employment rates and salaries, yielding an annual rate of return of 12 percent. Consistent with a geographically broader job search, individuals transition to jobs farther from home and public transportation. Our results suggest that accessing distant labor markets through credit for investment in individual mobility yields high and persistent returns.
Creation-Date: 2023-01
File-URL: https://www.bis.org/publ/work1071.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/work1071.htm
File-Format: text/html
Number: 1071
Keywords: access to credit, household finance, labor mobility, spatial mismatch
Classification-JEL: D14, G23, J62, R20, R23
Handle: RePEc:bis:biswps:1071