Access to credit cards and household labor participation: Evidence from China

Using two-wave panel data from the China Household Finance Survey (CHFS), this study aims to examine the impact of credit card access on household labor participation in China. The findings reveal a significant positive relationship between credit card use and labor market decision, even after addressing concerns related to endogeneity and conducting various robustness checks. Moreover, it suggests that the act of paying off credit debt could serve as a potential mechanism that motivates household members to join the workforce. There is further evidence indicating that carrying a credit card may enhance work intensity and boost entrepreneurial activity.