Distributional Income Effects of Banking Regulation in Europe
Melina Ludolph, Lena Tonzer, Lars Brausewetter
Journal of Corporate Finance,
Vol. 100 (July),
2026
Abstract
We study the impact of stricter and more harmonized banking regulation along the income distribution using household survey data for 25 EU countries. Exploiting country-level heterogeneity in the implementation of European Banking Union directives allows us to control for confounders and identify effects. Our results show that these regulatory reforms aimed at increasing financial system resilience affect households heterogeneously and result in a widening of the income distribution. These results are dependent on a country’s ex-ante regulatory stringency, and more pronounced in countries with stronger bank dependence. Furthermore, we find that more stringent regulation reduces income growth for low-income households primarily due to exits from employment, whereas affluent households tend to experience increased growth rates for employee and self-employed income.
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Robot Hubs and the Use of Robotics in US Manufacturing Establishments
Erik Brynjolfsson, Catherine Buffington, Nathan Goldschlag, J. Frank Li, Javier Miranda, Robert Seamans
American Economic Association Papers and Proceedings,
Vol. 115 (May),
2025
Abstract
We use data from the Annual Survey of Manufactures to study the characteristics and geographic distribution of investments in robots across US manufacturing establishments. Robotics adoption and robot intensity (the number of robots per employee) cluster in "robot hubs." Establishments that report having robotics are larger and have a larger production worker share, lower pay per worker, lower labor share, and higher capital expenditures, including higher IT capital expenditures. Notably, establishments are more likely to have robots if other establishments in the same core-based statistical area and industry also report having robotics, suggestive of agglomeration and peer effects.
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