IDEAS home Printed from https://ideas.repec.org/p/zbw/iwhdps/287750.html

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

Author

Listed:
  • Baessler, Laura
  • Gebhardt, Georg
  • Gropp, Reint
  • Güttler, André
  • Taskin, Ahmet

Abstract

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.

Suggested Citation

  • Baessler, Laura & Gebhardt, Georg & Gropp, Reint & Güttler, André & Taskin, Ahmet, 2024. "Do public bank guarantees affect labor market outcomes? Evidence from individual employment and wages," IWH Discussion Papers 7/2024, Halle Institute for Economic Research (IWH).
    • Handle: RePEc:zbw:iwhdps:287750
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/287750/1/1884134599.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:iab:iabjlr:v:54:p:art.10 is not listed on IDEAS
    2. Samuel Bentolila & Marcel Jansen & Gabriel Jiménez, 2018. "When Credit Dries Up: Job Losses in the Great Recession," Journal of the European Economic Association, European Economic Association, vol. 16(3), pages 650-695.
    3. repec:iab:iabjlr:v:54:i:1:p:art.10 is not listed on IDEAS
    4. Florian Englmaier & Till Stowasser, 2017. "Electoral Cycles in Savings Bank Lending," Journal of the European Economic Association, European Economic Association, vol. 15(2), pages 296-354.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Diegmann, André & Pohlan, Laura & Weber, Andrea, 2024. "Do Politicians Affect Firm Outcomes? Evidence from Connections to the German Federal Parliament," IZA Discussion Papers 17031, IZA Network @ LISER.
    2. Koetter, Michael & Krause, Thomas & Tonzer, Lena, 2019. "Delay determinants of European Banking Union implementation," European Journal of Political Economy, Elsevier, vol. 58(C), pages 1-20.
    3. Quinckhardt, Matthias, 2023. "The value of a party: Local politics and the allocation of intergovernmental transfers," European Journal of Political Economy, Elsevier, vol. 80(C).
    4. Anne-Laure Delatte & Adrien Matray & Noémie Pinardon-Touati, 2020. "Private Credit Under Political Influence: Evidence from France," Working Papers 2020-56, Princeton University. Economics Department..
    5. Belke, Ansgar & Haskamp, Ulrich & Setzer, Ralph, 2016. "Regional bank efficiency and its effect on regional growth in “normal” and “bad” times," Economic Modelling, Elsevier, vol. 58(C), pages 413-426.
    6. Julien Grenet & Hans Grönqvist & Edvin Hertegård & Martin Nybom & Jan Stuhler, 2024. "How Early Career Choices Adjust to Economic Crises," Working Papers halshs-04431902, HAL.
    7. Lepers, Etienne, 2025. "Surfing the credit wave: Government popularity as driver of credit cycles," European Journal of Political Economy, Elsevier, vol. 90(PA).
    8. Chen, Yanlong & Wang, Bencheng, 2025. "Does the deleveraging policy increase corporate labor outsourcing? —Evidence from China," Finance Research Letters, Elsevier, vol. 85(PE).
    9. Ivan Jaccard, 2024. "Monetary Asymmetries Without (And With) Price Stickiness," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 65(2), pages 1003-1047, May.
    10. Andreas Kern & Puspa Amri, 2021. "Political credit cycles," Economics and Politics, Wiley Blackwell, vol. 33(1), pages 76-108, March.
    11. Bram De Lange & Bruno Merlevede, 2020. "State-Owned Enterprises across Europe: Stylized Facts from a Large Firm-level Dataset," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 20/1006, Ghent University, Faculty of Economics and Business Administration.
    12. Kabiri, Ali & Malone, Vlad & Roland, Isabelle Angeline Madeleine & Spatareanu, Mariana, 2020. "Bank default risk propagation along supply chains: evidence from the UK," LSE Research Online Documents on Economics 121832, London School of Economics and Political Science, LSE Library.
    13. Laeven, Luc & McAdam, Peter & Popov, Alexander, 2023. "Credit shocks, employment protection, and growth:firm-level evidence from spain," Journal of Banking & Finance, Elsevier, vol. 152(C).
    14. Bednarek, Peter & Dinger, Valeriya & Kaat, Daniel Marcel te & Westernhagen, Natalja von, 2021. "To whom do banks channel central bank funds?," Journal of Banking & Finance, Elsevier, vol. 128(C).
    15. Fukuda, Akira, 2022. "Effects of financial frictions on employment: Evidence from Japan during the Global Financial Crisis," Journal of the Japanese and International Economies, Elsevier, vol. 65(C).
    16. Ghosh, Saibal, 2022. "Elections and provisioning behavior: Assessing the Indian evidence," Economic Systems, Elsevier, vol. 46(1).
    17. Belke, Ansgar & Setzer, Ralph & Haskamp, Ulrich, 2016. "Bank efficiency and regional growth in Europe: new evidence from micro-data," Working Paper Series 1983, European Central Bank.
    18. Ivashina, Victoria & Laeven, Luc & Moral-Benito, Enrique, 2022. "Loan types and the bank lending channel," Journal of Monetary Economics, Elsevier, vol. 126(C), pages 171-187.
    19. Zareh Asatryan & Annika Havlik, 2020. "The political economy of multilateral lending to European regions," The Review of International Organizations, Springer, vol. 15(3), pages 707-740, July.
    20. Lavezzolo, Sebastián, 2020. "Political regimes and bank interest margins," Economic Systems, Elsevier, vol. 44(2).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:iwhdps:287750. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/iwhhhde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.