TY - JOUR
T1 - Banking System Concentration and Labor Market Performance in Industrial Countries
AU - Feldmann, Horst
PY - 2013
Y1 - 2013
N2 - Using data on 21 industrial countries from the period 1987 to 2009 and a large number of controls, this paper finds that a more concentrated banking sector is likely to raise the unemployment rate and reduce the employment rate. The magnitude of these effects appears to be moderate. The results are robust to potential endogeneity of the bank concentration variable as well as to numerous variations in specification. They are important because, as a consequence of the recent global financial crisis, many industrial countries have experienced both an increase in banking system concentration and a deterioration in labor market performance.
AB - Using data on 21 industrial countries from the period 1987 to 2009 and a large number of controls, this paper finds that a more concentrated banking sector is likely to raise the unemployment rate and reduce the employment rate. The magnitude of these effects appears to be moderate. The results are robust to potential endogeneity of the bank concentration variable as well as to numerous variations in specification. They are important because, as a consequence of the recent global financial crisis, many industrial countries have experienced both an increase in banking system concentration and a deterioration in labor market performance.
UR - http://www.scopus.com/inward/record.url?scp=84882828541&partnerID=8YFLogxK
UR - http://dx.doi.org/10.1111/j.1465-7287.2012.00316.x
U2 - 10.1111/j.1465-7287.2012.00316.x
DO - 10.1111/j.1465-7287.2012.00316.x
M3 - Article
SN - 1074-3529
VL - 31
SP - 719
EP - 732
JO - Contemporary Economic Policy
JF - Contemporary Economic Policy
IS - 4
ER -