The Employment Effects of Faster Payment: Evidence from the Federal Quickpay Reform

• 成果类型: Article
• 署名作者: Barrot, Jean-Noel; Nanda, Ramana
• 署名单位: Hautes Etudes Commerciales (HEC) Paris; Harvard University; Imperial College London
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12955
• 发表日期: 2020
• 页码: 3139-3173
• 关键词: trade credit; financing constraints; SHOCKS AFFECT; INVESTMENT; LABOR; MARKETS; ECONOMY; COSTS; FIRMS; debt

摘要

We study the impact ofQuickpay, a reform that permanently accelerated payments to small business contractors of the U.S. government. We find a strong direct effect of the reform on employment growth at the firm level. However, we document substantial crowding out of nontreated firms' employment within local labor markets. While the overall net employment effect is positive, it is close to zero in tight labor markets. Our results highlight an important channel for alleviating financing constraints in small firms, but emphasize the general-equilibrium effects of large-scale interventions, which can lead to lower aggregate outcomes depending on labor market conditions.