Finance Seminar with Farzad Saidi, Stockholm School of Economics

On Friday March 8, 2019 Farzad Saidi, Stockholm School of Economics, will be giving a seminar on the paper: "The Effects of Credit Supply on Wage Inequality between and within Firms".

Fredag, 8 marts, 2019 - 11:00 to 12:15

The Department of Finance is proud to announce the upcoming seminar with Farzad Saidi, Stockholm School of Economics.

Farzad Saidi will present:

PDF iconThe Effects of Credit Supply on Wage Inequality between and within Firms

ABSTRACT
In this paper, we study the effect of a credit supply shock on the distribution of wages within and between firms. We construct a novel dataset combining administrative linked employer-employee data with information on firms' preexisting bank relationships in the credit market. We use the introduction of negative monetary policy rates in the euro area as a source of variation in banks' credit supply to firms in Germany. We find that this credit supply shock leads to higher within-firm wage inequality at more affected employers. At the same time, we find a reduction in between-firm wage inequality due to relatively higher average wages among initially lower-paying employers. Our results suggest that monetary policy can have important distributional consequences through affecting credit supply and firm pay heterogeneity.

Location:
Solbjerg Plads 3,
2000 Frederiksberg
Room: SPs03

 

Sidst opdateret: Department of Finance // 28/02/2019