EconPapers    
Economics at your fingertips  
 

Financing constraints and fixed-term employment contracts

Andrea Caggese () and Vicente Cuñat ()

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: This paper studies the interactions between financing constraints and the employment decisions of firms when both fixed-term and permanent employment contracts are available. We first develop a dynamic model that shows the effects of financing constraints and firing costs on employment decisions. Once calibrated, the model shows that financially constrained firms tend to use more intensely fixed term workers, and to make them absorb a larger fraction of the total employment volatility than financially unconstrained firms do. We test and confirm the predictions of the model on a unique panel data of Italian manufacturing firms with detailed information about the type of workers employed by the firms and about firm financing constraints.

Keywords: Finacing Constraints; Employment; Fixed-Term Contracts (search for similar items in EconPapers)
JEL-codes: G32 J21 J23 (search for similar items in EconPapers)
Date: 2006-06
New Economics Papers: this item is included in nep-bec
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13) Track citations by RSS feed

Downloads: (external link)
https://econ-papers.upf.edu/papers/1010.pdf Whole Paper (application/pdf)

Related works:
Journal Article: Financing Constraints and Fixed-term Employment Contracts (2008)
Journal Article: Financing Constraints and Fixed‐term Employment Contracts (2008) Downloads
Working Paper: Financing Constraints and Fixed-Term Employment Contracts (2005) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:1010

Access Statistics for this paper

More papers in Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra
Bibliographic data for series maintained by ( this e-mail address is bad, please contact ).

 
Page updated 2021-10-12
Handle: RePEc:upf:upfgen:1010