This paper examines the relationship between child labor and access to credit at a crosscountry level. Even though this link is theoretically central to child labor, so far there has been little work done to assess its importance empirically. We measure child labor as a country aggregate, and credit constraints are proxied by the extent of financial development. These two variables display a st...

We study a general equilibrium model with a housing market to understand the role of credit access among borrowers and show that an adverse financial shock can increase the asymmetry in the housing wealth distribution of subprime and prime borrowers. Households with better credit access can take advantage of the low housing prices during recessions, especially when the subprimers are previously...

Abstract This paper investigates firms’ access to bank credit in eleven euro area countries over the periods 2014–2019. Exploiting firm-level longitudinal data, we analyse loan demand and rationing probabilities, accounting for sample selection, unobserved heterogeneity state dependence. Empirical results show that small informationally opaque businesses, with deteriorated public support histor...

The observation of firms’ political connections (PCs) and corruption has raised the question their benefits to operation, especially on accessing financial resources. Firms with stronger or informal payment willingness may get easier in approaching formal bank loans. By using different types PCs bribe, study shows that while can help SMEs getting loans, bribe does not have any effect access cre...

We study the impact of bank credit supply on the output and productivity of borrower firms. Exploiting a matched firm-bank database covering all credit relationships of Italian corporations over more than a decade, we measure idiosyncratic supply-side shocks to firm credit availability. Then, we estimate a production model augmented with heterogeneous financial frictions, to show that an expans...

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expresse...