Banks, Firms, and Jobs

Fabio Berton, Sauro Mocetti, Andrea Presbitero and Matteo Richiardi

No 2017/038, IMF Working Papers from International Monetary Fund

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: WP; firm level; service sector; credit crunch; dependent variable; Bank lending channel; Job contracts; Employment; Financing constraints; Cleansing effect; employment decision; quarter FE; financing constraint; employment agency; firm FE; firm cluster; credit supply index; Credit; Bank credit; Loans; Labor force; Asia and Pacific; Global (search for similar items in EconPapers)
Pages: 57
Date: 2017-02-14
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=44666 (application/pdf)

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)
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:imf:imfwpa:2017/038

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().