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 Further research projects by Craig Zabala

 

Shadow Credit in the Middle Market

This project examines the continued development of the “shadow banking” market in the United States, focusing on lending to the private “middle market.” The analysis includes a continued review of an innovative segment of the financial markets and primary evidence from direct participation in five actual cases of private, non-bank lending between 2013 and 2015 as well as theoretical observations around that data. While there have been considerable challenges, historically, in providing credit for small and mid-sized businesses in the US, private middle market capital is currently growing at a dramatic pace, in part due to excessive constraints placed on the regulated depositary institutions. The project explains how innovation in shadow banking is intrinsically linked to “arbitraging” often excessively restrictive banking regulation. The increased size of the shadow credit market, while it provides an important service to middle market companies, may also pose a new systemic risk following the 2007-2008 credit crisis in the US. Furthermore, the project will develop a general framework to analyze an emerging credit market in advanced economies. Project duration at the MPIfG: July 2016 to June 2017.
 
Zabala, Craig Anthony/Jeremy Marc Josse, forthcoming 2017: Shadow Credit in the Middle Market: A Review of the Field with Market Updates and Examples of the Latest Shadow Banking Financial Innovations. Submitted to the Journal of Risk Finance.
 

 

Working on the Line: A Plant-level View of the Economy

This study analyzes the nature of collective bargaining in the U.S. automobile industry. The research is an update and extension of my doctoral dissertation at the University of California, Los Angeles in 1983 titled, Collective Bargaining at UAW Local 645, General Motors Assembly Division, Van Nuys, California, 1976-1982. I examine collective bargaining in one plant, through a study of United Automobile Workers Local 645 and the General Motors Assembly Division, Van Nuys, California, a plant that was eventually shuttered in 1992, based upon a number of years of experience as an assembly-line worker in the Body Shop Department, as well as active participation in the politics of the local union and of shop-floor life; however I look beyond the plant to the general economy. The main argument is that workplace bargaining shapes the labor process, determining the organization of work, wage rates, job control, industrial rights, and productivity. The central driving characteristic of this bargaining is the workers’ demand to constantly control work and improve the wage bargain on the one hand and the managers’ need to control work to reduce costs and its mirror, maximize productivity, on the other. This maximizing behavior expresses the basic labor–capital relation in auto plants during this period and forms the basis of national contract bargaining. I generalize my findings to study the sociological and economic factors that influence industrial relations performance at the plant level and the links between worker performance and productivity and production costs at the plant level. I will conclude this research with a comparative analysis of German works councils and recent Chinese industrial conflict. A book on this research is planned. Project duration at the MPIfG: July 2016 to June 2017.
 

 
Craig Zabala, Concorde Group, New York, has been a visiting researcher at the MPIfG from July 2016 to June 2017.

 

 

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