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Projected Employment Effects of a Repeal of the Glass-Steagall Act

Author

Listed:
  • Randall K. Filer

    (Hunter College)

  • Bernard Shull

    (Graduate Center, CUNY)

Abstract

Estimated.impacts on borrowing costs from increased underwriting competition are combined with a survey of borrowers regarding anticipated responses to lower costs to derive the predicted increase in domestic financial activity from repeal of the Glass-Steagall Act. This increased.activity is translated into employment impacts using employment patterns in financial and capital goods sectors. The best estimate is that Glass-Steagall repeal will create over 3,000 new primary jobs (with reasonable estimates bounded at about 1,000 and 7,500 jobs). Total employment effects depend on aggregate economic conditions, but in recessions may be as high as 30,000 and are likely to be over 12,500 jobs.

Suggested Citation

  • Randall K. Filer & Bernard Shull, 1991. "Projected Employment Effects of a Repeal of the Glass-Steagall Act," Eastern Economic Journal, Eastern Economic Association, vol. 17(2), pages 211-221, Apr-Jun.
    • Handle: RePEc:eej:eeconj:v:17:y:1991:i:2:p:211-221
    as

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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume17/V17N2P211_221.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Glass Steagall;

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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