FINANCING CONSTRAINTS AND FIXED-TERM EMPLOYMENT CONTRACTS

• 成果类型: Article
• 署名作者: Caggese, Andrea; Cunat, Vicente
• 署名单位: Pompeu Fabra University
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/j.1468-0297.2008.02200.x
• 发表日期: 2008
• 页码: 2013-2046
• 关键词: costs; FIRMS; cash

摘要

This article studies the interactions between financing constraints and the employment decisions of firms when both fixed-term and permanent employment contracts are available. It develops the model of an industry where firms face financing frictions and produce output using both fixed-term and permanent workers. Once calibrated, the model shows that financially constrained firms use fixed-term workers more intensely and 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 panel data of Italian manufacturing firms with detailed information about financing constraints and the type of workers employed by the firms.