%0 Report
        %A Moser, Christian
%A Saidi, Farzad
%A Wirth, Benjamin
%A Wolter, Stefanie
        %T Credit Supply, Firms, and Earnings Inequality
        %D 2026
        %8 2026 May
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 18633
        %U https://www.iza.org/publications/dp18633
        %X We study the distributional consequences of monetary policy-induced credit supply in the German labor market. Firms in relationships with banks that are more exposed to the introduction of negative interest rates in 2014 experience a relative contraction in credit supply, associated with lower average wages. Within firms, initially lower-paid workers are more likely to leave employment, while initially higher-paid workers see a relative decline in wages. Between firms, wages fall by more at initially higher-paying employers. Our results suggest that credit affects the distribution of wages and employment both within and between firms.
        %K wages
%K employment
%K distribution
%K credit supply
%K monetary policy
%K downward wage rigidity