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The impact of bank credit on employment formality in Uruguay

Nestor Gandelman and Alejandro Rasteletti

No 75, Documentos de Investigación from Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales

Abstract: This paper examines the effect of bank credit on employment formalization in Uruguay. Using a differencein-differences methodology proposed by Catão, Pagés and Rosales (2011), the paper finds that financial deepening decreases informality, especially in more financially dependent sectors. The effect is additionally found to be larger for women and younger workers. Despite the severe economic crisis and a sharp contraction of bank credit experienced by the economy in the period of analysis, no evidence is found that the effect of bank credit on employment formality has changed over time.

Keywords: credit market; informality; Uruguay (search for similar items in EconPapers)
JEL-codes: E26 G21 O16 O4 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2012-05
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Related works:
Working Paper: The Impact of Bank Credit on Employment Formality in Uruguay (2012) Downloads
Working Paper: The Impact of Bank Credit on Employment Formality in Uruguay (2012) Downloads
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