Financial markets and unemployment

• 成果类型: Article
• 署名作者: Monacelli, Tommaso; Quadrini, Vincenzo; Trigari, Antonella
• 署名单位: Bocconi University; University of Southern California
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2023.01.001
• 发表日期: 2023
• 页码: 596-626
• 关键词: debt; Wage bargaining; unemployment

摘要

We study the importance of financial markets for (un)employment fluctuations in a model with matching frictions where firms borrow under limited enforcement. Borrowing affects employment through a 'debt bargaining channel': higher debt improves the bargaining po-sition of employers with workers and increases the incentive to hire. We estimate the model structurally and find that the debt bargaining channel accounts for 26 percent of unemployment fluctuations. We find empirical support for the channel at the micro level using firm level data from Compustat. (c) 2023 Elsevier B.V. All rights reserved.