Arbeitspapier

Do public bank guarantees affect labor market outcomes? Evidence from individual employment and wages

We investigate whether employees in Germany benefit from public bank guarantees in terms of employment probability and wages. To that end, we exploit the removal of public bank guarantees in Germany in 2001 as a quasi-natural experiment. Our results show that bank guarantees lead to higher employment, but lower wage prospects for employees after working in affected establishments. Overall the results suggest that employees do not benefit from bank guarantees.

Language
Englisch

Bibliographic citation
Series: IWH Discussion Papers ; No. 7/2024

Classification
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Subject
bank guarantees
credit
employment
public banks
wages

Event
Geistige Schöpfung
(who)
Baessler, Laura
Gebhardt, Georg
Gropp, Reint
Güttler, André
Taskin, Ahmet
Event
Veröffentlichung
(who)
Halle Institute for Economic Research (IWH)
(where)
Halle (Saale)
(when)
2024

URN
urn:nbn:de:gbv:3:2-1054621
Last update
10.03.2025, 11:43 AM CET

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Object type

  • Arbeitspapier

Associated

  • Baessler, Laura
  • Gebhardt, Georg
  • Gropp, Reint
  • Güttler, André
  • Taskin, Ahmet
  • Halle Institute for Economic Research (IWH)

Time of origin

  • 2024

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