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dc.contributor.authorCatão, Luis A. V.en_US
dc.contributor.authorPagés, Carmenen_US
dc.contributor.authorRosales, Maria Fernandaen_US
dc.date.accessioned2010-02-01en_US
dc.date.accessioned2010-07-07T12:07:24Z-
dc.date.available2010-07-07T12:07:24Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/36246-
dc.description.abstractThis paper examines a much overlooked link between credit markets and formalization: since access to bank credit typically requires compliance with tax and employment legislation, firms are more likely to incur such formalization costs once bank credit is more widely available at lower cost; if so, well-functioning credit markets help foster formal employment at the expense of informal jobs. We gauge the relevance of this credit channel using the Rajan-Zingales measure of financial dependence and a difference-in-differences approach applied to household survey data from Brazil - a large emerging market where substantial changes in banking system depth and formalization ratios have taken place and for which consistent data exists. Our results show that formalization rates increase with financial deepening and the more so in sectors where firms are typically more dependent on external finance. We also decompose shifts in aggregate formalization into those within each firm size category and those associated with changes in firm size, and find that financial deepening significantly explains the former but not so much the latter.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesIZA Discussion Papers 4609en_US
dc.subject.jelE26en_US
dc.subject.jelG21en_US
dc.subject.jelO4en_US
dc.subject.jelO16en_US
dc.subject.ddc330en_US
dc.subject.keywordCredit marketsen_US
dc.subject.keywordfinancial dependenceen_US
dc.subject.keywordinformalityen_US
dc.subject.keywordBrazilen_US
dc.subject.stwKreditmarkten_US
dc.subject.stwKreditgeschäften_US
dc.subject.stwFinanzierungen_US
dc.subject.stwInformeller Sektoren_US
dc.subject.stwSchattenwirtschaften_US
dc.subject.stwLegalisierungen_US
dc.subject.stwBrasilienen_US
dc.titleFinancial dependence, formal credit, and informal jobs: new evidence from Brazilian household dataen_US
dc.typeWorking Paperen_US
dc.identifier.ppn617481180en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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