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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
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    References listed on IDEAS

    as
    1. Dauth, Wolfgang & Eppelsheimer, Johann, 2020. "Preparing the sample of integrated labour market biographies (SIAB) for scientific analysis," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 54(1), pages 1-10.
    2. Samuel Bentolila & Marcel Jansen & Gabriel Jiménez, 2018. "Erratum: When Credit Dries Up: Job Losses in the Great Recession," Journal of the European Economic Association, European Economic Association, vol. 16(2), pages 560-560.
    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)

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    Keywords

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    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

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