Banks and Labor as Stakeholders: Impact on Economic Performance

37 Pages Posted: 6 Feb 2018 Last revised: 6 Mar 2018

See all articles by Stijn Claessens

Stijn Claessens

Bank for International Settlements (BIS)

Kenichi Ueda

University of Tokyo - Faculty of Economics

Multiple version iconThere are 3 versions of this paper

Date Written: January 28, 2018

Abstract

The US banking sector was deregulated and US workers gained statuary basic protections between the early-1970s and the mid-1990s. The finance and labor literatures have largely studied the effects of these two reforms on productive activity separately. Yet they only have separable impacts under classical production theories, i.e., without frictions and ignoring how multiple stakeholders affect firms’ governance. Jointly estimating effects, we find that interactions between the two reforms matter for real economic activity, with effects especially large for industries dependent on external finance and knowledge. Results support a stakeholder view of corporate governance and suggest specific candidate underlying theories.

Keywords: Institutions and Growth, Worker Monopoly Rights, Labor Protection, Bank Monopoly and Competition

JEL Classification: O43, O16, J08, J83, G28, G33, G34

Suggested Citation

Claessens, Stijn and Ueda, Kenichi, Banks and Labor as Stakeholders: Impact on Economic Performance (January 28, 2018). Available at SSRN: https://ssrn.com/abstract=3111717 or http://dx.doi.org/10.2139/ssrn.3111717

Stijn Claessens

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
CH-4002 Basel
Switzerland

Kenichi Ueda (Contact Author)

University of Tokyo - Faculty of Economics ( email )

7-3-1 Hongo, Bunkyo-ku
Tokyo 113-0033
Japan

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