House prices, collateral, and self-employment
We show the importance of the collateral lending channel for small business employment over the past decade. Small businesses in areas with greater increases in house prices experienced stronger growth in employment than large firms in the same areas and industries. To identify the role of the colla...
| Main Authors: | , , |
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| Format: | Article |
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Elsevier BV
2018
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| Online Access: | http://hdl.handle.net/1721.1/118461 https://orcid.org/0000-0002-3658-9131 |
| _version_ | 1826217017915473920 |
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| author | Adelino, Manuel Schoar, Antoinette Severino, Felipe |
| author2 | Massachusetts Institute of Technology. Department of Economics |
| author_facet | Massachusetts Institute of Technology. Department of Economics Adelino, Manuel Schoar, Antoinette Severino, Felipe |
| author_sort | Adelino, Manuel |
| collection | MIT |
| description | We show the importance of the collateral lending channel for small business employment over the past decade. Small businesses in areas with greater increases in house prices experienced stronger growth in employment than large firms in the same areas and industries. To identify the role of the collateral lending channel separately from aggregate changes in demand, we show that this effect is more pronounced in industries that need little start-up capital and in which housing collateral is more important. This increase is also present in manufacturing industries, particularly those that ship goods over long distances. In aggregate, the collateral lending channel explains 15-25% of employment variation. Keywords: Housing; Collateral; Self-employment; Entrepreneurship; Small business |
| first_indexed | 2024-09-23T16:56:44Z |
| format | Article |
| id | mit-1721.1/118461 |
| institution | Massachusetts Institute of Technology |
| last_indexed | 2024-09-23T16:56:44Z |
| publishDate | 2018 |
| publisher | Elsevier BV |
| record_format | dspace |
| spelling | mit-1721.1/1184612022-10-03T09:19:29Z House prices, collateral, and self-employment Adelino, Manuel Schoar, Antoinette Severino, Felipe Massachusetts Institute of Technology. Department of Economics Sloan School of Management Schoar, Antoinette We show the importance of the collateral lending channel for small business employment over the past decade. Small businesses in areas with greater increases in house prices experienced stronger growth in employment than large firms in the same areas and industries. To identify the role of the collateral lending channel separately from aggregate changes in demand, we show that this effect is more pronounced in industries that need little start-up capital and in which housing collateral is more important. This increase is also present in manufacturing industries, particularly those that ship goods over long distances. In aggregate, the collateral lending channel explains 15-25% of employment variation. Keywords: Housing; Collateral; Self-employment; Entrepreneurship; Small business 2018-10-12T16:44:47Z 2018-10-12T16:44:47Z 2015-04 2014-03 2018-09-25T18:23:19Z Article http://purl.org/eprint/type/JournalArticle 0304-405X 1879-2774 http://hdl.handle.net/1721.1/118461 Adelino, Manuel et al. “House Prices, Collateral, and Self-Employment.” Journal of Financial Economics 117, 2 (August 2015): 288–306 © 2015 Elsevier B.V. https://orcid.org/0000-0002-3658-9131 http://dx.doi.org/10.1016/J.JFINECO.2015.03.005 Journal of Financial Economics Creative Commons Attribution-NonCommercial-NoDerivs License http://creativecommons.org/licenses/by-nc-nd/4.0/ application/pdf Elsevier BV Other univ. web domain |
| spellingShingle | Adelino, Manuel Schoar, Antoinette Severino, Felipe House prices, collateral, and self-employment |
| title | House prices, collateral, and self-employment |
| title_full | House prices, collateral, and self-employment |
| title_fullStr | House prices, collateral, and self-employment |
| title_full_unstemmed | House prices, collateral, and self-employment |
| title_short | House prices, collateral, and self-employment |
| title_sort | house prices collateral and self employment |
| url | http://hdl.handle.net/1721.1/118461 https://orcid.org/0000-0002-3658-9131 |
| work_keys_str_mv | AT adelinomanuel housepricescollateralandselfemployment AT schoarantoinette housepricescollateralandselfemployment AT severinofelipe housepricescollateralandselfemployment |