Job Creation under Liquidity Constraints: the Spanish Case

Silvio Rendon

No 101, Working Papers from Banco de España

Abstract: This paper shows that liquidity constraints restrict job creation even when labor markets are flexible. In a dynamic model of labor demand, I show that in an environment of imperfect capital and imperfect labor markets, firms use temporary contracts to relax financial constraints. Evidence for the predictions of the model is presented using Spanish data from the CBBE.

Keywords: liquidity; labour market; capital (search for similar items in EconPapers)
JEL-codes: E22 G31 J23 J32 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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http://www.bde.es/f/webbde/SES/Secciones/Publicaci ... o/01/Fic/dt0101e.pdf First version, 2001 (application/pdf)

Related works:
Working Paper: Job creation under liquidity constraints: The Spanish case (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:bde:wpaper:0101

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