The Impact of Bank Credit on Labor Reallocation and Aggregate Industry Productivity

John (Jianqiu) Bai, Daniel Carvalho and Gordon Phillips

No 24081, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We provide evidence that the deregulation of U.S. state banking markets leads to a significant increase in the relative employment and capital growth of local firms with higher productivity and that this effect is concentrated among young firms. Using financial data for a broad range of firms, our analysis suggests that this effect is driven by a shift in the composition of local bank credit supply towards more productive firms. We estimate that this effect translates into economically important gains in aggregate industry productivity and that changes in the allocation of labor play a central role in driving these gains.

JEL-codes: G2 G21 G3 G31 G32 J01 J21 J24 L22 L23 L25 O11 O12 (search for similar items in EconPapers)
Date: 2017-11
New Economics Papers: this item is included in nep-cfn, nep-eff, nep-fdg and nep-lma
Note: CF IO LS PR
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published as JOHN JIANQIU BAI & DANIEL CARVALHO & GORDON M. PHILLIPS, 2018. "The Impact of Bank Credit on Labor Reallocation and Aggregate Industry Productivity," The Journal of Finance, vol 73(6), pages 2787-2836.

Downloads: (external link)
http://www.nber.org/papers/w24081.pdf (application/pdf)

Related works:
Journal Article: The Impact of Bank Credit on Labor Reallocation and Aggregate Industry Productivity (2018)
Working Paper: The Impact of Bank Credit on Labor Reallocation and Aggregate Industry Productivity (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:24081

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w24081

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().