Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/89653
Authors: 
Bentolila, Samuel
Jansen, Marcel
Jiménez, Gabriel
Ruano, Sonia
Year of Publication: 
2013
Series/Report no.: 
CESifo Working Paper 4528
Abstract: 
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.
Subjects: 
job losses
Great Recession
credit constraints
JEL: 
D92
G33
J23
Document Type: 
Working Paper

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