When Credit Dries Up: Job Losses in the Great Recession
By S. Bentolila, M. Jansen, Gabriel Jiménez, Sonia Ruano. Social Science Research Network, 2013
327 citations recorded by the source corpus.
We use a unique dataset to estimate the impact of a large credit supply shock on employment in Spain. We exploit marked differences in banks’ health at the onset of the Great Recession. Several weak banks were rescued by the State and they reduced credit more than other banks. We compare employment changes from 2006 to 2010 at firms heavily indebted to weak banks before the crisis and the rest. Our estimates imply that these firms suffered an additional employment drop between 3 and 13.5 percentage points due to weak-bank attachment, representing between 8% and 36% of aggregate job losses.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/dbe18fea00232da8cde9af66acfca7ea17ebf065
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In Economics and Econometrics
Citations in the corpus
- Disentangling the Effects of a Banking Crisis: Evidence from German Firms and Counties (2018, background): “2Gan (2007); Khwaja and Mian (2008); Amiti and Weinstein (2011); Garicano and Steinwender (2013); Bentolila et al. (2015); Paravisini et al. (2015); Cingano et al.”
- Real Effects of the Sovereign Debt Crisis in Europe: Evidence from Syndicated Loans (2018, unknown): “Notably, the study finds that firms that had only a single connection to one weak bank obtained more credit than similar firms working with several banks, which Bentolila et al. (2013) interpret as a sign of “zombie lending”.”