Banks, Firms, and Jobs

58 Pages Posted: 23 Mar 2017

See all articles by Fabio Berton

Fabio Berton

LABORatorio R. Revelli, Centre for Employment Studies

Sauro Mocetti

Bank of Italy

Andrea Filippo Presbitero

Università Politecnica delle Marche - Department of Economics; Centre for Macroeconomics & Finance Research (CeMaFiR)

Matteo G. Richiardi

LABOR - Collegio Carlo Alberto

Multiple version iconThere are 2 versions of this paper

Date Written: February 2017

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: Financial crises, Loans, Business enterprises, Banks, Bank credit, Employment, Europe, External shocks, Italy, Labor markets, Bank lending channel; Job contracts; Employment; Financing constraints; Cleansing effect, Bank lending channel, Job contracts, Financing constraints, Cleansing effect

JEL Classification: G01, G21, J23, J63

Suggested Citation

Berton, Fabio and Mocetti, Sauro and Presbitero, Andrea Filippo and Richiardi, Matteo Guido, Banks, Firms, and Jobs (February 2017). IMF Working Paper No. 17/38. Available at SSRN: https://ssrn.com/abstract=2938336

Fabio Berton (Contact Author)

LABORatorio R. Revelli, Centre for Employment Studies ( email )

Via Real Collegio 30
10024 Moncalieri
Italy

Sauro Mocetti

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Andrea Filippo Presbitero

Università Politecnica delle Marche - Department of Economics ( email )

Piazzale Martelli, 8
Ancona, AN 60121
Italy
+39 0712207074 (Phone)

HOME PAGE: http://sites.google.com/site/presbitero/

Centre for Macroeconomics & Finance Research (CeMaFiR) ( email )

Piazza Mirabello, 2
Milan, 20100
Italy

Matteo Guido Richiardi

LABOR - Collegio Carlo Alberto ( email )

Via Real Collegio 30
10024 Moncalieri, Torino 10024
Italy
+39.011.670.5067 (Phone)
+39.011.670.5061 (Fax)

HOME PAGE: http://www.labor-torino.it/english/people/cv_richiardi.htm

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