Distributional income effects of banking regulation in Europe

Arbeitspapier

We study the impact of stricter and more harmonized banking regulation along the income distribution using household survey data for 25 EU countries. Exploiting country-level heterogeneity in the implementation of European Banking Union directives allows us to control for confounders and identify effects. Our results show that these regulatory reforms aimed at increasing financial system resilience affected households heterogeneously. More stringent regulation reduces income growth for low-income households due to employment exits. Yet it tends to increase growth rates at the top of the distribution both for employee and self-employed income.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IWH Discussion Papers ; No. 24/2023

Classification and Topics

• Classification: Wirtschaft ; Personal Income, Wealth, and Their Distributions ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Financial Institutions and Services: Government Policy and Regulation
• Subject: distributional effects ; EU-SILC microdata ; financial regulation ; income inequality

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Brausewetter, Lars ; Ludolph, Melina
• Event: Veröffentlichung
• (who): Halle Institute for Economic Research (IWH)
• (where): Halle (Saale)
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/281193
• URN: urn:nbn:de:gbv:3:2-1029756
• Last update: 10.03.2025, 11:41 AM CET