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Document Type

Article

Abstract

Economists debate how important credit availability is to sustaining real economic growth. Episodes of financial instability and tight credit create a “credit crunch.” This paper investigates the effects of a credit crunch on employment in broad sectors of the U.S. economy. Monthly employment data is used to compare changes in employment by sector during recessions associated with a credit crunch and recessions not associated with a credit crunch. The results suggest that there is not a significant difference in how employment is affected in these broad sectors. The evidence supports the idea of a financial business cycle.

Publication Date

Spring 2009

Journal Title

Major Themes in Economics

Volume

11

Issue

1

First Page

71

Last Page

82

Copyright

©2009 by Major Themes in Economics

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Language

EN

File Format

application/pdf

Included in

Economics Commons

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