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

Ahya Eyvazi, Naser Amanzadeh, Majid Einian and Steven Ongena
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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)

No 26-59, Swiss Finance Institute Research Paper Series from Swiss Finance Institute

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.

Keywords: Household finance; formal credit access; bank employment; credit constraints; durable expenditure; Iran (search for similar items in EconPapers)
JEL-codes: D12 E21 G21 G51 O16 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2026-08
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