Mortgage Refinancing and Labor Supply

Last registered on July 29, 2024
View Trial History

Pre-Trial

Trial Information

General Information

Title
Mortgage Refinancing and Labor Supply
RCT ID
AEARCTR-0014068
Initial registration date
July 24, 2024

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
July 29, 2024, 5:14 PM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Country
China
Region

Primary Investigator

Name
Xiao Yin
Affiliation
UCL
Contact Primary Investigator

Other Primary Investigator(s)

PI Name
Martina Rocchi
PI Affiliation
UCL
Contact Investigator

Additional Trial Information

Status
Completed
Start date
2023-04-01
End date
2024-07-02
Keywords
Behavior, Labor
Additional Keywords
Refinance, labor supply, RCT, financial stress
JEL code(s)
E21, E24, J22, C93
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
We combine a customized survey and randomized controlled trial (RCT) to study the effect of mortgage refinancing on household labor supply. We find that an exogenous reduction in mortgage payments increases working hours, total income, and spending and reduces perceived stress levels. The effects are stronger for those with younger age, lower liquidity, more debt, or higher stress levels. Our results are consistent with that debt decreases labor supply through a financial stress channel.
External Link(s)

Registration Citation

Citation
Rocchi, Martina and Xiao Yin. 2024. "Mortgage Refinancing and Labor Supply." AEA RCT Registry. July 29. https://doi.org/10.1257/rct.14068-1.0
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
Text message about the total savings in monthly mortgage payments if they refinance their mortgage now.
Intervention Start Date
2023-04-01
Intervention End Date
2023-04-02

Primary Outcomes

Primary Outcomes (end points)
Working hours, consumption, total income.
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
We collaborate with a large commercial bank in China to study the effects of mortgage refinancing on labor supply. The procedure is as follows:
1. In April 2023, we randomly selected 7000 homeowners who are the customers of this bank.
2. Two-thirds of the customers are randomly assigned to a treatment group, and the rest are in the control group.
3. Both treatment and control groups receive an invitation through text messages to complete a survey.
4. The treatment group receives another text message about the total savings in monthly mortgage payments if they refinance their mortgage now.
5. Six months later, we sent out a survey asking about their current economic outlooks.
Experimental Design Details
Randomization Method
A random number generator
Randomization Unit
at the individual level
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
1
Sample size: planned number of observations
7000
Sample size (or number of clusters) by treatment arms
3500 for each group
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information
IRB

Institutional Review Boards (IRBs)

IRB Name
IRB Approval Date
IRB Approval Number
Analysis Plan

Post-Trial

Post Trial Information

Study Withdrawal

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information

Intervention

Is the intervention completed?
No
Data Collection Complete
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials