Finance and unemployment: new panel evidence

Dong-Hyeon Kim, Ting Cih Chen, Shu Chin Lin

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)


The effect of credit market imperfections on unemployment is largely investigated in the context of financial crises. This paper shifts the focus toward financial development and structure in a panel of advanced and developing countries. Some important findings emerge. Unemployment increases with financial development and concentration in banking markets but decreases with market orientation, the effect is stronger in magnitudes for young workers than female ones. More rigid market regulation increases unemployment. These findings are particularly pronounced for countries with higher income, better developed financial sectors, lower income inequality, greater trade openness, higher democracy, and common-law systems.

Original languageEnglish
JournalJournal of Economic Policy Reform
Publication statusAccepted/In press - 2018 Jan 1


  • dynamic heterogeneity
  • financial development
  • financial structure
  • Unemployment

ASJC Scopus subject areas

  • Business and International Management
  • Economics, Econometrics and Finance(all)


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