Full Citation

Title: Liquor is Quicker when Finance is Local: Local Access to Finance and Employment Growth

Citation Type: Miscellaneous

Publication Year: 2015

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Abstract: This paper studies the causal effect of local access to finance on employment growth in service occupations. Using changes in liquor laws as exogenous shifts in labor-intensive economic opportunities, I document that employment growth in service occupations increases most in areas with high local access to finance. The growth comes from young businesses, suggesting a stronger effect of local financing on younger firms. I explore the implications of these findings in the aggregate US labor market. The results show that local finance is correlated with employment growth in low skill service occupations, which has reshaped the distribution of employment growth in recent decades.

Url: http://eab7.web.rice.edu/research/ElizabethABerger_JobMarketPaper.pdf

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Authors: Berger, Elizabeth A

Publisher: Jones Graduate School of Business, Rice University

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure, Other

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