Arbeitspapier
Banking on snow: Bank capital, risk, and employment
How does small-firm employment respond to exogenous labor productivity risk? We find that this depends on the capitalization of firms' local banks. The evidence comes from firms offering (quasi-) fixed employment to workers whose productivity depends on the weather. Weather risk reduces this employment, and the effect is stronger in regions where the regional banks have less equity capital. Bank capitalization also proxies for the extent to which the regional banks' borrowers can obtain liquidity when the regions are hit by weather shocks. We argue that, as liquidity providers, well-capitalized banks support economic adaptation to climate change.
- Language
-
Englisch
- Bibliographic citation
-
Series: Working Paper ; No. 2210
- Classification
-
Wirtschaft
- Event
-
Geistige Schöpfung
- (who)
-
Baumgartner, Simon
Stomper, Alex
Schober, Thomas
Winter-Ebmer, Rudolf
- Event
-
Veröffentlichung
- (who)
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Johannes Kepler University of Linz, Department of Economics
- (where)
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Linz
- (when)
-
2022
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Baumgartner, Simon
- Stomper, Alex
- Schober, Thomas
- Winter-Ebmer, Rudolf
- Johannes Kepler University of Linz, Department of Economics
Time of origin
- 2022
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