Paper #1832

Título:

Monetary policy, labor income redistribution and the credit channel: Evidence from matched employer-employee and credit registers

Autores:

Martina Jasova, Caterina Mendicino, Ettore Panetti, José-Luis Peydró y Dominik Supera

Data:

Septiembre 2021

Resumen:

We document the heterogeneous effects of monetary policy on labor market outcomes via credit channel. Using employee-employer and credit registers in Portugal, we show that falling rates increase wages, hours worked and employment more in financially constrained small and young firms. Consistent with the capital-skill complementarity mechanism, we document an increase in the skill premium and show that financially constrained firms increase both physical and human capital investment the most. We uncover a central role of the credit channel with stronger state-dependent effects during crises. The effects are fully driven by firms with bank credit.

Palabras clave:

Monetary policy, labor income inequality, firm balance sheet channel, bank lending channel, capital-skill complementarity.

Códigos JEL:

D22, D31, E52, G01, G21

Área de investigación:

Finanzas y Contabilidad

Descargar el paper en formato PDF