Financial intermediation and employment
AbstractThis paper explores the relationship between financial intermediation and employment. We explain why some economies have low financial intermediation even when financial intermediation is safe. Moreover, we seek to explain why these economies tend to be poor and vulnerable, and also have large self-employment even when the latter has low productivity. We model safe but unsound banks and show that the effects of bad banking can be overcome only partially by corrective taxes. The model is extended to incorporate the illegal sector of the economy as well as the labor laws.
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Bibliographic InfoPaper provided by Indian Statistical Institute, New Delhi, India in its series Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers with number 04-22.
Length: 33 pages
Date of creation: Jun 2004
Date of revision:
Financial intermediation; self-employment; tax; labor laws;
Other versions of this item:
- Manoj Pant & Prabal Roy Chowdhury & Gurbachan Singh, . "Financial Intermediation and Employment," Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers 09-08, Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India.
- G20 - Financial Economics - - Financial Institutions and Services - - - General
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-09-30 (All new papers)
- NEP-CFN-2004-09-30 (Corporate Finance)
- NEP-ENT-2004-09-30 (Entrepreneurship)
- NEP-MFD-2004-09-30 (Microfinance)
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