Indiana University SPEA Edward J. Bloustein School of Planning and Public Policy University of Pennsylvania AIR American University

Panel Paper: Much Ado about Nothing? Evidence Suggests No Adverse Effects of Payday Lending on Military Members

Saturday, November 14, 2015 : 2:25 PM
Brickell South (Hyatt Regency Miami)

*Names in bold indicate Presenter

Susan Payne Carter and William Skimmyhorn, United States Military Academy at West Point
We evaluate the effect that payday loan access has on credit and labor market outcomes of individuals in the U.S. Army.  Using the conditional random assignment of servicemembers to different locations, we employ three identification strategies: cross-sectional variation in state policies, within-term variation in payday lending access over time, and a difference-in-difference analysis using the national Military Lending Act.  We find few adverse effects of payday loan access on servicemembers when using any of these methods even when we examine dozens of subsamples that explore potential differential treatment effects

Full Paper: