TY - JOUR
T1 - Financial Access and Labor Market Outcomes
T2 - Evidence from Credit Lotteries
AU - Van Doornik, Bernardus
AU - Gomes, Armando
AU - Schoenherr, David
AU - Skrastins, Janis
N1 - Publisher Copyright:
© 2024 American Economic Association. All rights reserved.
PY - 2024/6
Y1 - 2024/6
N2 - 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 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 to 15 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.
AB - 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 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 to 15 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.
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U2 - 10.1257/aer.20230585
DO - 10.1257/aer.20230585
M3 - Article
AN - SCOPUS:85197471219
SN - 0002-8282
VL - 114
SP - 1854
EP - 1881
JO - American Economic Review
JF - American Economic Review
IS - 6
ER -