Banks, Firms, and Jobs

Fabio Berton, Sauro Mocetti, Andrea Presbitero and Matteo Richiardi

No 136, Mo.Fi.R. Working Papers from Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences

Abstract: We analyze the 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 contraction in credit supply explains one fourth of the reduction in employment. This result is concentrated in more levered and less productive firms. Also, the relatively less educated and less skilled workers with temporary contracts are the most affected. Our results are consistent with the cleansing role of financial shocks.

Keywords: Bank lending channel; Job contracts; Employment; Financing constraints; Cleansing effect. (search for similar items in EconPapers)
JEL-codes: G01 G21 J23 J63 (search for similar items in EconPapers)
Pages: 56
Date: 2017-01
New Economics Papers: this item is included in nep-ban, nep-cfn, nep-eur and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Related works:
Journal Article: Banks, Firms, and Jobs (2018)
Working Paper: Banks, firms, and jobs (2017)
Working Paper: Banks, firms and jobs (2017)
Working Paper: Banks, Firms, and Jobs (2017)
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