Credit and the Labour Share
Evidence from US States
Bibliographic Data
| ID | 9709834 |
|---|---|
| Authors | Aslı Leblebicioğlu (Baruch College), Ariel Weinberger (0000-0003-2638-1238, George Washington University, corresponding author) |
| Year | 2020 |
| Volume | 130 |
| Issue | 630 |
| Pages | 1782-1816 |
| Publication date | 2020-08-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (PUBLISHER • GB) |
| DOI | 10.1093/ej/ueaa025 |
| OpenAlex | W3037244215 |
| Language | EN |
| Citations received | 4 |
| References cited | 43 |
We investigate the role of credit markets as a cause for changes in the US labour share. Causal evidence is provided that the labour share declined between 0.8 and 1.2 percentage points following the interstate banking deregulation, explaining more than half of the overall reduction during that period. The lower costs of credit and greater bank competition in each state are mechanisms that led to the decline. To quantify the relationship between credit and factor payments, we calibrate a model with financial frictions and highlight financial development as a potential channel for the reduction in labour share observed globally
Bank credit · Competition (biology · Deregulation · Economics · Financial system · Labour economics · Market economy · Monetary economics · Payment · Banking stability, regulation, efficiency · Economic Theory and Policy · Finance · Housing Market and Economics
Optimal contracts and competitive markets with costly state verification
Finance and Development
Finance and Growth
Equipment Investment and Economic Growth
Capital Accumulation and Economic Growth
The Global Decline of the Labor Share
The Finance-Growth Nexus
The Decline of the U.S. Labor Share
Capital-skill Complementarity and Inequality
Capital Allocation and Productivity in South Europe
Finance and Misallocation
Concentrating on the Fall of the Labor Share
Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets
How Much Should We Trust Differences-In-Differences Estimates?
Mostly Harmless Econometrics
Capital is Back
Measuring the Bias of Technological Change
Enjoying the Quiet Life? Corporate Governance and Managerial Preferences
| Unique citing works | 4 |
|---|---|
| Citations per year | 0,67 |
| Citation span | 2020 - 2026 (7) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 4 |