Credit and Hiring

Vincenzo Quadrini, Qi Sun
2015 Social Science Research Network  
We study an industry dynamics model where access to credit improves the bargaining position of firms with workers and increases the incentive to hire. To evaluate the importance of the bargaining channel for the hiring decisions of firms, we estimate the model structurally using data from Compustat and Capital IQ and find that the bargaining channel contributes to about 15% of variations in firm-level employment.
doi:10.2139/ssrn.2646370 fatcat:2y3iuzlp5bb3lart2ecbam2m64