Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/228212
Authors: 
Stieglitz, Moritz
Setzer, Ralph
Year of Publication: 
2019
Series/Report no.: 
ECB Working Paper No. 2334
Abstract: 
We explore the interaction between labour market reforms and financial frictions. Our study combines a new cross-country reform database on labour market reforms with matched firmbank data for nine euro area countries over the period 1999 to 2013. While we find that labour market reforms are overall effective in increasing employment, restricted access to bank credit can undo up to half of long-term employment gains at the firm-level. Entrepreneurs without sufficient access to credit cannot reap the full benefits of more exible employment regulation.
Subjects: 
Structural Reforms
Bank Stress
Employment Protection
Unemployment Insurance
JEL: 
G21
J21
J60
K31
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-3903-4
Document Type: 
Working Paper

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