CREDIT CONSTRAINTS AND LABOR SUPPLY: EVIDENCE FROM BANK BRANCHING DEREGULATION.

This paper examines labor supply adjustment‐both at the intensive and extensive margins‐following financial market development. Specifically, we exploit the staggered passage of bank branching deregulation in the United State to study the impact of relaxing credit constraints on labor supply decisio...

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Publicado en:Economic Inquiry Vol. 58; no. 1; pp. 335 - 361
Autores principales: Dao Bui, Kien, Ume, Ejindu S.
Formato: Artículo
Publicado: Wiley-Blackwell Jan2020
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: CREDIT CONSTRAINTS AND LABOR SUPPLY: EVIDENCE FROM BANK BRANCHING DEREGULATION.
      aug:
        au:
          Dao Bui, Kien
          Ume, Ejindu S.
        affil: Department of Economics, Miami University, Oxford OH, 45056
      su:
        Labor supply
        Heterogeneity
        Financial markets
        Bond market
        Theory of constraints
      sug:
        subj:
          Labor supply
          Heterogeneity
          Temporary Help Services
          Securities and Commodity Exchanges
          Investment Banking and Securities Dealing
          Financial markets
          Bond market
          Theory of constraints
      ab: This paper examines labor supply adjustment‐both at the intensive and extensive margins‐following financial market development. Specifically, we exploit the staggered passage of bank branching deregulation in the United State to study the impact of relaxing credit constraints on labor supply decisions. We find strong evidence that improvements in how credit markets function decrease weekly hours worked, and that the effect is most significant for the lower‐middle (marginal) income group. Furthermore, we observe heterogeneous responses across demo graphic groups (race and income). In contrast, we find little to no evidence that deregulation has a significant impact on the extensive margin of participation.
      pubtype: Academic Journal
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    language: English
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