Banks, Firms, and Jobs

Author/Editor:

Fabio Berton ; Sauro Mocetti ; Andrea Presbitero ; Matteo Richiardi

Publication Date:

February 14, 2017

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

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.

Series:

Working Paper No. 17/38

Subject:

English

Publication Date:

February 14, 2017

ISBN/ISSN:

9781475579017/1018-5941

Stock No:

WPIEA2017038

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

57

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