Banking deregulation around the world, 1970s to 2000s: The impact on unemployment

Horst Feldmann

International Review of Economics & Finance, 2012, vol. 24, issue C, 26-42

Abstract: Using data on 53 countries, this paper studies the unemployment effects of the far-reaching banking liberalization that many countries engaged in between the late 1970s and the early 2000s. According to the regression results, this liberalization substantially decreased unemployment, particularly among young people. The lowering of barriers to the entry of foreign banks, new domestic banks and non-bank financial intermediaries, and the reduction in state ownership, had the strongest effects. There is some, albeit weak, evidence that the cutback in interest rate controls has decreased unemployment as well. The results are robust to both endogeneity and numerous variations in specification.

Keywords: Banking regulation; Labor market; Unemployment (search for similar items in EconPapers)
JEL-codes: E24 E44 G28 J64 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1059056012000044
Full text for ScienceDirect subscribers only

Related works:
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:eee:reveco:v:24:y:2012:i:c:p:26-42

DOI: 10.1016/j.iref.2012.01.003

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().