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Journal Article

Banks, firms, and jobs

Authors

Publication date

Jun 2018

Summary

We analyze the heterogeneous employment effects of financial shocks using a rich data set of job contracts, matched with the universe of firms and their lending banks in one Italian region. To isolate the effect of the financial shock, we construct a firm-specific time-varying measure of credit supply. The preferred estimate indicates that the average elasticity of employment to a credit supply shock is 0.36⁠. Adjustment affects both the extensive and the intensive margins and is concentrated among workers with temporary contracts. We also examine the heterogeneous effects of the credit crunch by education, age, gender and nationality.

Published in

Review of Financial Studies

Volume and page numbers

31 , 2113 -2156

DOI

https://doi.org/10.1093/rfs/hhy003

Subjects

Labour Market, Organizations And Firms, Economics, and Finance

Links

University of Essex, Albert Sloman Library Periodicals *restricted to University of Essex registered users* - https://lib.essex.ac.uk/iii/encore/record/C__Rb1588077?lang=eng

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