Health Impacts of Public Pawnshops in Industrializing Tokyo

This study is the first to investigate whether pawnshops, financial institutions for low-income populations, have contributed to the decline in mortality in the early twentieth century. Using ward-level panel data from Tokyo City, this study revealed that the popularity of public pawnshops was associated with a 4% and 5% decrease in infant mortality and fetal death rates, respectively, during 1927-1935. The historical context implies that the potential channels of the relationships were improving nutrition and hygiene and covering childbirth costs. Moreover, a cost-benefit calculation highlighted that the establishment of public pawnshops was a cost-effective public investment for better public health. Contrarily, for-profit private pawnshops showed no significant association with health improvements.