Résumés
Summary
Wage lien laws have immense potential to help workers collect owed wages. Because liens can secure rights to property before full adjudication, workers can rest assured that real assets will exist should they prevail and scofflaw employers cannot easily hide assets from collections. Despite the proven usefulness of wage lien laws, opponents frequently argue that broad lien regimes would restrict credit.
We use a difference in differences regression analysis to test this argument, using data from the US Small Business Administration 7(a) loan program. We look to two multistate metropolitan areas in the United States with divided wage lien regimes – Chicago and Washington DC. In each case, wage lien laws are permitted in one state (Wisconsin and Maryland, respectively) and not allowed in others (Illinois and Indiana for Chicago, Virginia for Washington).
We test the argument against wage liens through regression analysis, looking at gross approvals and interest rates as a reflection of risk. We also aggregate observations by 4-digit NAICS code, by lending institution, and by ZIP postal code and reran regression analyses. The wage lien law treatment did not lower the gross approval amount of 7(a) loans in either market, and did not increase the interest rate faced by borrowers. Indeed, results, while mostly statistically insignificant, in some cases showed the opposite effect. Although these tests do not definitively prove that wage lien laws do not constrict credit flows to small businesses, they provide absolutely no evidence to support such an argument either. The findings thus support the position of advocates supporting wage lien laws as a common-sense tool in the arsenal against wage theft, while casting substantial doubt on oppositional claims against wage liens.
Abstract
This article evaluates the impact on business access to credit of wage lien laws, which are an important tool for low-wage workers to reduce wage theft. Worker advocates have tried to expand access to wage liens. Opponents argue that wage liens negatively impact business access to credit. Using data from the Small Business Administration 7(a) loan program, one of the only detailed sources of business loan data, we assess whether lien laws affect business access to credit in two states—Wisconsin and Maryland—using a difference-in-differences framework. We find no evidence to support wage lien opponents’ claims that lien laws reduce credit access. The findings contribute to the understanding of wage liens and provide evidence in support of policies that protect workers.
Keywords:
- wage liens,
- wage theft,
- small business loans,
- difference-in-differences analysis
Résumé
Les lois sur les privilèges salariaux (Wage lien law) ont un immense potentiel pour aider les travailleurs à recouvrer les salaires dus. Parce que les privilèges peuvent garantir les droits de propriété avant la répartition des sommes, les travailleurs peuvent être assurés que les actifs réels existeront s'ils l'emportent lors d’un litige; les employeurs escrocs ne pouvant pas facilement cacher les actifs. Malgré l'utilité avérée des lois sur les privilèges salariaux, les opposants soutiennent fréquemment que ces régimes de privilèges restreindraient le crédit disponible.
Nous utilisons une analyse de régression pour vérifier cet argument, en utilisant les données du programme de prêt 7(a) de la US Small Business Administration. Nous regardons deux zones métropolitaines multi-états aux États-Unis avec des régimes de privilège salarial divisés - Chicago et Washington DC. Dans chaque cas, les lois sur les privilèges salariaux sont autorisées dans un état (Wisconsin et Maryland, respectivement) et n’existe pas dans les autres (Illinois et Indiana pour Chicago, Virginie pour Washington). Nous testons l'argument contre les liens salariauxen examinant les approbations brutes et les taux d'intérêt comme un reflet du risque. Nous agrégeons également les observations par code SCIAN à 4 chiffres, par banque, et par code postal ZIP et refaisons les analyses de régression.
Le traitement prévu par la loi sur les privilèges salariaux n'a pas réduit le montant brut d'approbation des prêts 7 (a) sur l'un ou l'autre marché et n'a pas augmenté le taux d'intérêt auquel sont confrontés les emprunteurs. En effet, les résultats, bien que pour la plupart statistiquement insignifiants, ont dans certains cas montré l'effet inverse. Bien que ces tests ne prouvent pas définitivement que les lois sur les privilèges salariaux ne restreignent pas le crédit, ils ne fournissent absolument aucune preuve pour étayer un tel argument non plus. Les résultats soutiennent ainsi la position des défenseurs soutenant les lois sur les privilèges salariaux en tant qu'outil de bon sens dans l'arsenal contre le vol de salaire, tout en jetant un doute important sur les réclamations de l'opposition contre les liens salariaux.
Précis
Cet article évalue l’impact des lois sur les privilèges salariaux sur l'accès des entreprises au crédit. Constituant un outil important pour les travailleurs à bas salaire afin de réduire le vol de salaire, les opposants affirment plutôt que les privilèges salariaux ont un impact négatif sur l'accès des entreprises au crédit. En utilisant les données du programme de prêt 7(a) de la Small Business Administration, l'une des seules sources détaillées de données sur les prêts aux entreprises, nous évaluons si les lois sur les privilèges affectent l'accès des entreprises au crédit dans deux États - le Wisconsin et le Maryland - en utilisant un cadre de différence dans les différences. Nous ne trouvons aucune preuve pour soutenir les affirmations des opposants au privilège salarial selon lesquelles ces lois réduisent l'accès au crédit. Les résultats contribuent à la compréhension des privilèges salariaux et fournissent des preuves à l'appui des politiques qui protègent les travailleurs.
Mots-clefs:
- privilège salariaux,
- vol de salaire,
- prêts aux entreprises,
- analyse des différences
Parties annexes
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