@TechReport{iza:izadps:dp10751,
            	author={Guney, Ibrahim Ethem and Hacihasanoglu, Yavuz Selim and Tumen, Semih},
            	title={Consumer Loan Response to Permanent Labor Income Shocks: Evidence from a Major Minimum Wage Increase},
            	year={2017},
	month={Apr},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={10751},
            	url={https://www.iza.org/publications/dp10751},
	abstract={We investigate the impact of a substantial minimum wage increase, which became effective in January 2016, on consumer loans in Turkey. Using bank-level data and designing an original identification strategy, we ask whether the loans provided by banks with a historically high share of low-wage loan customers have increased relative to those provided by banks with a historically low share of low-wage loan customers after January 2016. 
Our results suggest that consumer loan flows have displayed a limited but statistically and economically meaningful increase following the minimum wage hike. This increase mostly comes from the increase in long-term general-purpose loans. Vehicle loans have also increased, while there is no change in housing loans. 
In the overall, the minimum wage hike has generated a moderate and transitory increase in the flow of consumer loans extended to low-wage earners in Turkey – perhaps due to delayed consumption effect. Consumption of durables, which can further increase household borrowing capacity through collateralized debt channel, has only slightly and temporarily increased. The underlying long-term trends in the stock of consumer loans have hardly changed. },
	keywords={consumer loans;labor income shocks;minimum wages;triple difference},
            }