Abstract

We plan to study the effect of public bank guarantees on employment and wage outcomes for individuals and establishments. We use the removal of public guarantees for savings banks in Germany in 2001 as a quasi-natural experiment. This removal affected only German savings banks as they were protected by a federal government guarantee, while the rest of the banks can be used as a control group. We plan to compare employment and wage outcomes in savings banks, and firms that rely on savings banks credit.