The last few decades have been accompanied by disruptive changes to the structure of employment which have led to deterioration in demand for middle-skill occupations, a process known as job polarisation. As the demand for middle-skill workers shrinks, expectations about households’ income through their lifetime horizon are adjusted. It is unclear whether these expectations can loop back into the credit system, and affect the lending b ehaviour of credit institutions, or whether this process impacts on the households’ self-assessment of their opportunities to borrow money. In this paper, we study how the process of job polarisation affects credit demand and supply, studying its relationship with credit constraint and credit quality
Original languageEnglish
PublisherEuropean Central Bank
Number of pages40
ISBN (Electronic)978-92-899-5267-5
Publication statusPublished - 23 Jul 2022
MoE publication typeD4 Published development or research report or study

Publication series

NameWorking paper series - European Central Bank
PublisherEuropean Central Bank
ISSN (Print)1725-2806

Fields of Science

  • 511 Economics

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