Logo
Munich Personal RePEc Archive

The causal effect of restrictive bank lending on employment growth: A matching approach

Kleemann, Michael and Wiegand, Manuel (2013): The causal effect of restrictive bank lending on employment growth: A matching approach.

[thumbnail of MPRA_paper_43529.pdf]
Preview
PDF
MPRA_paper_43529.pdf

Download (230kB) | Preview

Abstract

Does restrictive bank lending cause lower employment growth at the firm-level or does it reflect firm characteristics that drive the deterioration of employment figures? Applying propensity score matching, we estimate the treatment effect of restrictive bank lending on employment growth. Combining balance sheet information and survey data on a firm's current and expected future business situation, we rule out the impact of firm heterogeneity. We find that credit constraints have a significant negative effect on employment growth. Restricted firms also apply for short-time work more often, but this effect is small and not significant in all estimations.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.