*Department of Economics & International Development, University of Bath, Bath BA2 7AY, United Kingdom. E-mail: firstname.lastname@example.org.
Credit Market Regulation and Labor Market Performance Around the World
Version of Record online: 19 OCT 2006
Volume 59, Issue 4, pages 497–525, November 2006
How to Cite
Feldmann, H. (2006), Credit Market Regulation and Labor Market Performance Around the World. Kyklos, 59: 497–525. doi: 10.1111/j.1467-6435.2006.00347.x
- Issue online: 19 OCT 2006
- Version of Record online: 19 OCT 2006
Using data from 74 industrial, developing and transition countries for the years 2000 to 2003, this paper empirically analyzes whether and to what extent credit market regulations affect the performance of the labor market. According to the regression results, anti-competitive credit market regulations have an adverse, though generally modest, impact on the labor market. Specifically, restrictions on credit extended to the private sector, on the private ownership of banks, on competition from foreign banks, and on the free determination of interest rates appear to lower the level of employment and increase unemployment, particularly among young people.