SMU SOE Seminar (October 23, 2023): Credit and firms' organisation

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ABSTRACT We study the nexus between the organization of firm's labor and firm credit. We use employer-employee data, firm loans and bank balance sheets to construct an instrument for firm's credit supply based on firm-bank credit linkages. We conduct an event study and evaluate the importance of credit for the organization of firm's labor in the aftermath of an exogenous shock: the global financial crisis. We show that firms reduce employment of team leaders and production workers. We investigate the channel and provide evidence that the re-organization of the firms' labor structure happens via the financing of machines: firms that invested in machines before the financial crisis are more exposed to the credit shock and re-organize by reducing employment of workers that are complementary with machines. Click here to view the CV.
		PRESENTER Alessandro Sforza Universita di Bologna
		RESEARCH FIELDS International Trade Labor and Organisational economics
		DATE: 23 October 2023 (Monday)
		TIME: 4pm - 5.30pm
		VENUE: Meeting Room 5.1, Level 5 School of Economics Singapore Management University 90 Stamford Road Singapore 178903