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Dr. Muhammad Nawaz
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Academic Career Length
3Years (2024-Present)
(Calculated once Scilit publication data is synced: current year − year of first publication + 1)
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Journal Article
The credit constraint, an example of an incomplete credit market, provides an incentive to intensify the extensive and intensive margins related to labor force participation and work hours, respectively. This study uses the cross-section data from the Survey of Consumer Finance (SCF) and analyzes the impact of credit constraints on labor supply decisions, time to search for employment, and work hours. The empirical findings using the IV-probit and 2SLS models suggest that credit constraints and their various measures encourage households to increase both labor force participation and work hours to offset the negative impact of financial constraints. The intensity of working hours increases when we introduce both the alternate form of credit constraint and various age bands. Credit-constrained individuals effectively search for jobs and are most likely to accept employment in a short period, but their job search process takes more time than non-constrained individuals.
3 January 2024 in SSRN Electronic Journal
Preprint
MNMuhammad Nawaz
Muhammad NawazMNMichael D. Noel
Michael D. Noel
Small businesses are important drivers of economic activity and job creation, but they can face significant credit constraints in starting their businesses. This study empirically examines the impact of credit constraints on a household's decision to become self-employed using data from the 2019 wave of the Survey of Consumer Finance (SCF). At the same time, we explore the role that risk tolerance plays in small business formation. The results show that credit constraints and risk aversion significantly limit startup business activities, with significant heterogeneity across sectors.
About Me
Dr. Muhammad Nawaz is an Assistant Professor at the University of North Carolina Asheville. He earned his Ph.D. in Economics with concentration in Finance from Texas Tech University in 2022, following his MPhil from the Pakistan Institute of Development Economics (PIDE) in 2015. Dr. Nawaz’s research focuses on macro-finance, climate finance, and household finance, particularly the effects of credit market imperfections like adverse selection and moral hazard on labor markets, business cycles, and small business financing. He emphasizes financial inclusion as a solution to macroeconomic instability and development in transitional economies. Dr. Nawaz has worked on various projects with the IDRC, SANDEE, and the Frankfurt School. He was selected as a fellow for the Adaptation Finance fellowship funded by the IDRC. Dr. Nawaz teaches economics and various course in finance such as Corporate Finance, Investment, Climate Finance at undergraduate level, focusing on real-world applications and student engagement.