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  • 2022
  • Working Paper

Fintech to the (Worker) Rescue: Earned Wage Access and Employee Retention

By: Jose Murillo, Boris Vallee and Dolly Yu
  • Language:English
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Abstract

Using novel data from a Mexican FinTech firm, we study the usage by workers of earned wages access, an innovative financial service offered by firms to their employees as a benefit. We find usage to be significant and concentrated towards the end of the pay cycle. We document that such usage is associated with a higher employee retention, suggestive of improved welfare. We consider the possible underlying mechanisms for a causal effect, liquidity insurance, and catering to present-bias, and find empirical evidence supportive of both being at play for different segment of users.

Keywords

Fintech; Present Bias; Earned Wage Access; Wages; Employees; Retention; Well-being; Mexico

Citation

Murillo, Jose, Boris Vallee, and Dolly Yu. "Fintech to the (Worker) Rescue: Earned Wage Access and Employee Retention." Working Paper, March 2022.
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About The Author

Boris Vallee

Finance
→More Publications

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More from the Authors
  • Masdar City: Aiming for Sustainable and Profitable Real Estate By: Boris Vallee and Fares Khrais
  • Can Finance Save the World? Measurement and Effects of Coal Divestment Policies by Banks By: Daniel Green and Boris Vallée
  • A Case in Point: Shared Home Equity By: Daniel Green, Boris Vallee and Sean Bracken
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