Financial institutions shape labor markets from "summary" of Labor in the Age of Finance by Sanford M. Jacoby
Financial institutions play a crucial role in shaping labor markets by providing the necessary financing for businesses to operate and grow. Without access to capital, businesses would not be able to hire employees, invest in new technology, or expand their operations. As a result, the health of financial institutions has a direct impact on the availability of jobs and the overall stability of the labor market. One way in which financial institutions influence labor markets is through their lending practices. Banks and other financial institutions determine who has access to credit and at what cost, which can have a significant impact on businesses' ability to hire and retain employees. For example, during times of economic downturn, banks may tighten their lending standards, making it more difficult for businesses to secure the financing they need to maintain or expand their workforce. In addition to providing capital, financial ...
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