Credit Supply and Human Capital: Evidence from Bank Pension Liabilities

60 Pages Posted: 6 Jun 2017 Last revised: 17 Mar 2019

See all articles by Luciana Barbosa

Luciana Barbosa

Bank of Portugal - Economic Research Department

Andrada Bilan

Swiss Finance Institute; University of Zurich

Claire Celerier

University of Toronto - Rotman School of Management

Multiple version iconThere are 2 versions of this paper

Date Written: February 12, 2019

Abstract

We identify the effects of exogenous credit constraints on firm ability to attract and retain skilled workers. To do so, we exploit a shock to the value of the pension obligations of Portuguese banks resulting from a change in accounting norms. Using bank-firm credit exposures that we match with a census of all Portuguese employees, we show that firms in a relationship with affected banks borrow less and reduce employment mostly of high-skilled workers. High-skilled workers are more likely to exit and less likely to join affected firms. Overall, credit market frictions might have long-lasting effects on firm productivity and growth through the firm accumulation of human capital.

Keywords: Credit Frictions, Bank Regulation, Employment, Human Capital

JEL Classification: G21, J32, J63

Suggested Citation

Barbosa, Luciana and Bilan, Andrada and Celerier, Claire, Credit Supply and Human Capital: Evidence from Bank Pension Liabilities (February 12, 2019). Paris December 2017 Finance Meeting EUROFIDAI - AFFI. Available at SSRN: https://ssrn.com/abstract=2981127 or http://dx.doi.org/10.2139/ssrn.2981127

Luciana Barbosa

Bank of Portugal - Economic Research Department ( email )

R. do Ouro, 27
Lisboa, 1100-150
Portugal

Andrada Bilan (Contact Author)

Swiss Finance Institute ( email )

c/o University of Geneva
40, Bd du Pont-d'Arve
CH-1211 Geneva 4
Switzerland

University of Zurich ( email )

Rämistrasse 71
Zürich, CH-8006
Switzerland

Claire Celerier

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

Register to save articles to
your library

Register

Paper statistics

Downloads
92
Abstract Views
818
rank
258,504
PlumX Metrics