Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/280988 
Year of Publication: 
2023
Series/Report no.: 
ZEW Discussion Papers No. 23-048
Publisher: 
ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung, Mannheim
Abstract: 
This paper studies the long-term consequences on firms and workers of the credit crunch triggered by the 2007-2008 global financial crisis. Relying on a unique matched bank-employer-employee administrative dataset, we construct a firm-specific credit supply shock and examine firms' and workers' outcomes for 11 years after the crisis. We find that highly-exposed firms shrink permanently and invest less; these effects are larger for high capital-intensive firms. The impact on workers' earnings is also long-lasting, especially for high skilled workers, who are more complementary to capital. Displaced workers reallocate mostly to low capital-intensive firms, experiencing persistent wage losses.
Subjects: 
credit crunch
employment
wages
long term effects
linked bank-employer-employee panel data
capital-skill complementarity
JEL: 
E24
E44
G21
J21
J31
J63
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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