  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.
