{"title":"Local banking market structure and employment dynamics: evidence from US counties","authors":"Amit Ghosh, Salvador Contreras","doi":"10.1007/s10436-025-00461-0","DOIUrl":null,"url":null,"abstract":"<div><p>Does the local banking market structure affect the local labor market? The answer to this question has important social-economic implications. Using a panel dataset covering over 2700 counties from 1994 to 2020 we find that concentrated banking markets are associated with lower county-level unemployment rates. Exploring transmission mechanisms, we find that concentration increases different categories of bank lending, including small business loans. Higher concentration also leads to small business formation and job creation. Our findings lend support to the relative efficient structure paradigm suggesting concentration in local banking markets results in more efficient banks gaining market shares, increasing their local comparative advantage, in turn improving access to credit and leading to stronger local labor market.</p></div>","PeriodicalId":45289,"journal":{"name":"Annals of Finance","volume":"21 2","pages":"163 - 188"},"PeriodicalIF":0.7000,"publicationDate":"2025-04-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Annals of Finance","FirstCategoryId":"1085","ListUrlMain":"https://link.springer.com/article/10.1007/s10436-025-00461-0","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
Does the local banking market structure affect the local labor market? The answer to this question has important social-economic implications. Using a panel dataset covering over 2700 counties from 1994 to 2020 we find that concentrated banking markets are associated with lower county-level unemployment rates. Exploring transmission mechanisms, we find that concentration increases different categories of bank lending, including small business loans. Higher concentration also leads to small business formation and job creation. Our findings lend support to the relative efficient structure paradigm suggesting concentration in local banking markets results in more efficient banks gaining market shares, increasing their local comparative advantage, in turn improving access to credit and leading to stronger local labor market.
期刊介绍：
Annals of Finance provides an outlet for original research in all areas of finance and its applications to other disciplines having a clear and substantive link to the general theme of finance. In particular, innovative research papers of moderate length of the highest quality in all scientific areas that are motivated by the analysis of financial problems will be considered. Annals of Finance''s scope encompasses - but is not limited to - the following areas: accounting and finance, asset pricing, banking and finance, capital markets and finance, computational finance, corporate finance, derivatives, dynamical and chaotic systems in finance, economics and finance, empirical finance, experimental finance, finance and the theory of the firm, financial econometrics, financial institutions, mathematical finance, money and finance, portfolio analysis, regulation, stochastic analysis and finance, stock market analysis, systemic risk and financial stability. Annals of Finance also publishes special issues on any topic in finance and its applications of current interest. A small section, entitled finance notes, will be devoted solely to publishing short articles – up to ten pages in length, of substantial interest in finance. Officially cited as: Ann Finance
求助内容：
应助结果提醒方式：
京公网安备 11010802042870号
