Monetary policy, the bank-lending channel and labor market adjustment of firms
Am Dienstag, 15.07.2025, findet eine neue Ausgabe des Finance Research Seminars statt. Dieses Mal ist auf Einladung von Prof. Schneider Ahmet Ali Taskin, Ph.D., von der FAU Erlangen-Nürnberg und dem Institut für Arbeitsmarkt- und Berufsforschung zu Gast. Das FR-Seminar findet als Präsenzveranstaltung im JUR 253 statt. Zusätzlich wird ein Zoom Meeting angeboten; Anmeldung per E-Mail an Mira Maslej, mira.maslej@wiwi.uni-muenster.de.
Monetary policy, the bank-lending channel and labor market adjustment of firms
This paper studies the real effects of monetary policy on firms’ labor adjustment. Using detailed bank, firm and worker data for Germany, we find that firms reduce employment in response to contractionary monetary policy. We show that this employment reduction results from a relative decline in inflows rather than outflows. Inflows fall in particular for low-wage workers, whereas firms retain high-wage workers. We interpret this as evidence for labor hoarding. Using variation in the bank exposure to monetary policy, we show that these results are driven by the exposure of the firm to the bank-lending channel.