Labor Market and Financial Shocks: A Time-Varying Analysis

Corsello, Francesco; Landi, Valerio Nispi

doi:10.2139/ssrn.3006609

Cited by 2 publications

(3 citation statements)

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“…Tightening of financial conditions leads companies to reduce wages and the number of hours worked per employee [7]. Companies publish fewer vacancies and offer lower wages [8].…”

Section: Introductionmentioning

confidence: 99%

“…In macroeconomic literature, most empirical studies that analyse the effects of financial shocks does not address the issues related to labour market [12]. On the one hand, there is an increasing number of theoretical publications analysing the effects of financial shocks on several aspects of the labour market; on the other hand, at the macro level, empirical works include only one variable on the labour market [8].…”

Section: Introductionmentioning

confidence: 99%

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Czech companies will have to deal with import of labour

2022

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Labour market or supply and demand for labour is determined by how individuals demand work (supply) and how the offer of jobs is from the side of companies (demand). This is a very important issue, as it is a part of the main factor markets. The data on labour market are used for analysing the movement of labour market. Thanks to this, it is possible to forecast its approximate development. The basic source are data from the database of the Ministry of Labour and Social Affairs of the Czech Republic. The objective of this paper is to analyse the development of supply and demand for labour in the years 2010-2020 and forecast its development until 2025. The analysis of time series is performed using the method of artificial neural networks, which enables the analysis of the development between 2010 and 2020 and forecasting the further development of supply and demand for labour until the year 2025. The research shows that the development until the year 2025 will not be very favourable. The demand will be much greater than the supply, which means there will be more vacancies than workers. To fill the vacancies and be able to further operate, companies will try to solve this situation by hiring workers from other countries. The results of the paper being submitted may serve for other labour market research.

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“…Tightening of financial conditions leads companies to reduce wages and the number of hours worked per employee [7]. Companies publish fewer vacancies and offer lower wages [8].…”

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Czech companies will have to deal with import of labour

2022

View full text Add to dashboard Cite

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“…Some recent macro studies using VAR models also find that financial shocks matter less or even not at all during expansions (seeColombo and Paccagnini, 2020;Corsello and Nispi Landi, 2020).…”

mentioning

confidence: 99%

Markups and Financial Shocks

Meinen

Soares

2021

SSRN Journal

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Research QuestionRecent research shows that firm heterogeneity plays a crucial role in understanding the dynamics of aggregate market power. Several factors may influence markup adjustments at the firm level in different ways. In this paper, we analyse the impact of financial shocks on firms' markups, and, in particular, the ability of these shocks to generate heterogeneous markup dynamics across firms. ContributionWe do so by combining two state-of-the-art approaches and detailed German micro data from the Bundesbank for the years 2007-2013, which allow us to obtain estimates of both markups and financial shocks that vary across firms and time. By using matched bankfirm-level data, we can estimate bank-loan supply shifters that are exogenous from the perspective of the firm. Moreover, we follow a widely used approach, and corresponding applications and extensions, in order to estimate firm-level markups using data on firms' financial accounts. We can thus study the role of financial shocks in driving firm-level markups. Moreover, we investigate the economic mechanisms behind our results and gauge their implications at the aggregate level. ResultsWe find that markup responses to bank-credit supply shocks are heterogeneous across firms. In particular, firms more exposed to liquidity risks tend to raise markups in response to negative bank-loan supply shocks, while less exposed firms generally reduce them. The effects we find turn out to occur only contemporaneously, to be driven by more negative financial shocks, and to take place mainly during the financial crisis period. Further empirical analyses suggest that our findings are mostly consistent with models featuring a sticky customer base, where financially constrained firms have an incentive to raise markups in order to sustain liquidity. Finally, we present evidence that financial frictions can introduce a countercyclical dimension in the aggregate markup. Nichttechnische Zusammenfassung FragestellungJüngere Forschungsarbeiten zeigen, dass die Heterogenität von Unternehmen eine wichtige Rolle für die Entwicklung der durchschnittlichen Preisaufschläge in einer Volkswirtschaft spielt. Dabei können unterschiedliche Faktoren die Margen von Unternehmen auf verschiedene Weisen beeinflussen. In diesem Papier wird der Einfluss von Finanzmarktfriktionen auf die Preisaufschläge von Firmen analysiert. Dabei wird insbesondere untersucht, inwieweit Finanzmarktschocks heterogene Margenanpassungen bei Unternehmen verursachen. Beitrag Dazu werden auf Basis moderner empirischer Ansätze und detaillierter deutscher Mikrodaten der Bundesbank für die Jahre 2007 bis 2013 Finanzmarktschocks und Preisaufschläge geschätzt, die über Unternehmen und Jahre variieren. Insbesondere können anhand von Einzeldaten zur Kreditvergabe von Banken an Unternehmen Finanzmarktstörungen geschätzt werden, die Bankkreditangebotsschocks entsprechen und daher aus Sicht der Unternehmen exogen bedingt sind. Zudem werden auf Basis einer weitverbreiteten Methode Preisaufschläge von Firmen anhand von Bilanzinf...

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Labor Market and Financial Shocks: A Time-Varying Analysis

Cited by 2 publications

References 33 publications

Czech companies will have to deal with import of labour

Czech companies will have to deal with import of labour

Markups and Financial Shocks

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