Firm-level Employment, Labour Market Reforms, and Bank Distress
Ralph Setzer, Moritz Stieglitz
Journal of International Money and Finance,
February
2022
Abstract
We explore the impact of financial frictions on the employment effect of labour market reforms. Our study combines a new cross-country reform database on labour market reforms with matched firm-bank data for nine euro area countries over the period 1999 to 2013. While we find that labour market reforms are overall effective in increasing employment, restricted access to bank credit can undo up to half of medium to long-term employment gains at the firm-level. Entrepreneurs without sufficient access to credit cannot reap the full benefits of more flexible employment regulation.
Read article
Centre for Evidence-based Policy Advice
Centre for Evidence-based Policy Advice (IWH-CEP) ...
See page
2 student assistants (f/m/x)(CompNet)
2 student assistants (f/m/x) (CompNet) The Halle Institute for Economic Research...
See page
IWH Discussion Papers
Submission and Revision of IWH Discussion Papers Please submit your paper for publication in the IWH Discussion Paper series to Stefanie Müller-Dreißigacker ( ...
See page
Mayer ref rec
Refereed Publications ...
See page
Homepage
No Deep Recession Despite Energy Crisis and Rise in Interest Rates The IWH forecasts that due to the recovery from the...
See page
IWH Bankruptcy Research
IWH Bankruptcy Research The Bankruptcy Research Unit of the Halle Institute for...
See page
Latest Issue
Subscribe to the IWH Newsletter “Wirtschaft im Wandel” ...
See page
East Germany
East Germany Rearguard Only investments in education will lead to a further catch-up ...
See page
Behaviour
The maths behind gut decisions First carefully weigh up the costs and benefits and then make a rational...
See page