TY  - RPRT
        AU  - Moser, Christian
AU  - Saidi, Farzad
AU  - Wirth, Benjamin
AU  - Wolter, Stefanie
        TI  - Credit Supply, Firms, and Earnings Inequality
        PY  - 2026/May/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 18633
        UR  - https://www.iza.org/publications/dp18633
        AB  - 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.
        KW  - wages
KW  - employment
KW  - distribution
KW  - credit supply
KW  - monetary policy
KW  - downward wage rigidity
        ER  -