Codes for the article "Indebtedness and labor risk sorting across consumer lender types in Chile"

These codes use the original sources of data to add in replicating the article: “Indebtedness and labor risk sorting across consumer lender types in Chile”, Journal of Banking Regulation, 2024, forthcoming.

Borrowers are segmented across lenders in Chile based on their income and labor risk. Using survey data I show that banks have the borrowers of highest income and education and the lowest unemployment rates, while households with no access to debt have the lowest income and education and the highest unemployment risk. Using a comprehensive survey dataset from Chile, I estimate a panel data model of lender choice, loan amounts and default. I then simulate the effects of counterfactual policies, such as increased borrowers' repayment capacity tests and better financial literacy.