Financing constraints and unemployment: Evidence from the Great Recession

• 成果类型: Article
• 署名作者: Duygan-Bump, Burcu; Levkov, Alexey; Montoriol-Garriga, Judit
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2014.12.011
• 发表日期: 2015
• 页码: 89-105
• 关键词: Great recession; firm size; Financial dependence; unemployment

摘要

This paper shows that financing constraints of small firms were one of the drivers of unemployment dynamics during the 2007-2009 recession in the United States. Specifically, workers in small firms were more likely to become unemployed during the 2007-2009 recession than comparable workers in large firms, but only if they were employed in industries with high financing needs. We find very similar results for the 1990-1991 recession, but not for the 2001 recession, where only the former was associated with a reduction in loan supply. The findings support the credit constraints hypothesis and underscore the role of bank lending in explaining labor market activity. (C) 2015 Elsevier B.V. All rights reserved.