Employment Effects of Financial Constraints during the Great Recession

• 成果类型: Review
• 署名作者: Siemer, Michael
• 署名单位: Federal Reserve System - USA
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/rest_a_00733
• 发表日期: 2019-03
• 页码: 16-29
• 关键词: business cycles; house prices; credit; entry

摘要

Employment declined substantially during the 2007-2009 recession, especially in small and young firms. Using confidential firm-level data of the universe of firms and a difference-in-differences methodology, this paper estimates that financial constraints reduced employment growth by 4 to 8 percentage points in small firms relative to large firms and by 7 to 9 percentage points in young relative to old firms. I find that the effect of financial constraints on small firms is driven to a large extent by young firms. I then document that financial constraints affected employment growth in small and young firms strongly through the entry and exit of firms.