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When the Job Opens Doors to Loans: Bank Employment, Loan Access, and Durable Spending

Author

Listed:
  • Ahya Eyvazi

    (Allameh Tabataba’i University)

  • Naser Amanzadeh

    (Sharif University of Technology)

  • Majid Einian

    (Arcada University of Applied Sciences)

  • Steven Ongena

    (University of Zurich - Department Finance; Swiss Finance Institute; KU Leuven; NTNU Business School; Centre for Economic Policy Research (CEPR))

Abstract

How is employment-linked access to formal credit associated with the level and composition of household expenditure? We study this question using the Iranian Household Income and Expenditure Survey for 2010-2023. Households whose head works in banking are substantially more likely to receive formal loans and obtain larger loan amounts than observationally similar households. We then use bank employment as an instrument for formal borrowing. Conditional on the instrumentalvariable assumptions, an additional unit of non-housing credit is associated with about 0.7 units of durable expenditure and 0.1 units of nondurable expenditure, revealing a pronounced durable-heavy spending response.

Suggested Citation

  • Ahya Eyvazi & Naser Amanzadeh & Majid Einian & Steven Ongena, 2026. "When the Job Opens Doors to Loans: Bank Employment, Loan Access, and Durable Spending," Swiss Finance Institute Research Paper Series 26-59, Swiss Finance Institute.
    • Handle: RePEc:chf:rpseri:rp2659
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    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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