Financial fragility; Employment; Panel data models
Résumé :
[en] Financial fragility increases economic uncertainty and restricts credit to firms, leading to lower economic growth and employment. Despite voluminous research on the relation between financial fragility and growth, the effect of financial fragility on employment is understudied. Using a global panel for the period 1998–2017, we identify a negative effect of financial fragility on employment, even after accounting for unobserved country heterogeneity. The impact of financial fragility is stronger in the post-crisis period and in more rigid labor markets, and the magnitude of the effect is higher in developing/emerging economies than in developed countries. Nevertheless, this negative effect can be mitigated in countries with a higher level of financial market development. Our results are robust to the use of several robustness tests, including different measures of financial fragility and an instrumental variables approach.
Disciplines :
Domaines particuliers de l’économie (santé, travail, transport...) Finance Méthodes quantitatives en économie & gestion Macroéconomie & économie monétaire
Auteur, co-auteur :
Chletsos, Michael ✱; University of Piraeus > Department of Economics
SINTOS, Andreas ✱; University of Ioannina > Department of Economics
✱ Ces auteurs ont contribué de façon équivalente à la publication.
Co-auteurs externes :
no
Langue du document :
Anglais
Titre :
The effect of financial fragility on employment
Date de publication/diffusion :
janvier 2021
Titre du périodique :
Economic Modelling
ISSN :
0264-9993
eISSN :
1873-6122
Maison d'édition :
Elsevier, Amsterdam, Pays-Bas
Titre particulier du numéro :
Aspects of Macroeconomic Analysis and International Finance
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