Financing constraints and fixed-term employment contracts: evidence from the 2008-09 financial crisis

Detalhes bibliográficos
Autor(a) principal: Fernandes, Ana P.
Data de Publicação: 2015
Outros Autores: Ferreira, Priscila
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/1822/36450
Resumo: This paper investigates the effects of financing constraints on employment decisions of firms, when it is possible to choose between permanent and fixed-term workers. We use linked employer-employee data for the universe of private sector firms in Portugal, and the 2008-09 financial crisis as a shock for identification. We find that firms in sectors that intrinsically rely more on external finance increased the share of fixed-term employment and hires after the crisis, while the effect for firms with wider access to buyer-supplier credit is relatively lower. At the worker level, workers in sectors that require significant external financing are more likely to be hired with a fixed-term contract after the crisis, while those in sectors that have wider access to supplier credit are less likely. Our results suggest that the crisis induced financially constrained firms to use the more flexible fixed-term contracts more intensively. Credit from suppliers alleviated this effect by potentially providing an alternative source of funds to credit from financial institutions.
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spelling Financing constraints and fixed-term employment contracts: evidence from the 2008-09 financial crisisFinancial crisisCredit constraintsEmploymentFixed-term ContractsCiências Sociais::Economia e GestãoThis paper investigates the effects of financing constraints on employment decisions of firms, when it is possible to choose between permanent and fixed-term workers. We use linked employer-employee data for the universe of private sector firms in Portugal, and the 2008-09 financial crisis as a shock for identification. We find that firms in sectors that intrinsically rely more on external finance increased the share of fixed-term employment and hires after the crisis, while the effect for firms with wider access to buyer-supplier credit is relatively lower. At the worker level, workers in sectors that require significant external financing are more likely to be hired with a fixed-term contract after the crisis, while those in sectors that have wider access to supplier credit are less likely. Our results suggest that the crisis induced financially constrained firms to use the more flexible fixed-term contracts more intensively. Credit from suppliers alleviated this effect by potentially providing an alternative source of funds to credit from financial institutions.European Union FEDER Programme, and Fundação para a Ciência e a Tecnologia. Project EXPL/IIM-ECO/1207/2013.Universidade do Minho. Núcleo de Investigação em Microeconomia Aplicada (NIMA)Universidade do MinhoFernandes, Ana P.Ferreira, Priscila2015-062015-06-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/1822/36450enghttp://www3.eeg.uminho.pt/publications/NIMAwp58.pdfinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-21T12:07:14Zoai:repositorium.sdum.uminho.pt:1822/36450Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:58:07.677501Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Financing constraints and fixed-term employment contracts: evidence from the 2008-09 financial crisis
title Financing constraints and fixed-term employment contracts: evidence from the 2008-09 financial crisis
spellingShingle Financing constraints and fixed-term employment contracts: evidence from the 2008-09 financial crisis
Fernandes, Ana P.
Financial crisis
Credit constraints
Employment
Fixed-term Contracts
Ciências Sociais::Economia e Gestão
title_short Financing constraints and fixed-term employment contracts: evidence from the 2008-09 financial crisis
title_full Financing constraints and fixed-term employment contracts: evidence from the 2008-09 financial crisis
title_fullStr Financing constraints and fixed-term employment contracts: evidence from the 2008-09 financial crisis
title_full_unstemmed Financing constraints and fixed-term employment contracts: evidence from the 2008-09 financial crisis
title_sort Financing constraints and fixed-term employment contracts: evidence from the 2008-09 financial crisis
author Fernandes, Ana P.
author_facet Fernandes, Ana P.
Ferreira, Priscila
author_role author
author2 Ferreira, Priscila
author2_role author
dc.contributor.none.fl_str_mv Universidade do Minho
dc.contributor.author.fl_str_mv Fernandes, Ana P.
Ferreira, Priscila
dc.subject.por.fl_str_mv Financial crisis
Credit constraints
Employment
Fixed-term Contracts
Ciências Sociais::Economia e Gestão
topic Financial crisis
Credit constraints
Employment
Fixed-term Contracts
Ciências Sociais::Economia e Gestão
description This paper investigates the effects of financing constraints on employment decisions of firms, when it is possible to choose between permanent and fixed-term workers. We use linked employer-employee data for the universe of private sector firms in Portugal, and the 2008-09 financial crisis as a shock for identification. We find that firms in sectors that intrinsically rely more on external finance increased the share of fixed-term employment and hires after the crisis, while the effect for firms with wider access to buyer-supplier credit is relatively lower. At the worker level, workers in sectors that require significant external financing are more likely to be hired with a fixed-term contract after the crisis, while those in sectors that have wider access to supplier credit are less likely. Our results suggest that the crisis induced financially constrained firms to use the more flexible fixed-term contracts more intensively. Credit from suppliers alleviated this effect by potentially providing an alternative source of funds to credit from financial institutions.
publishDate 2015
dc.date.none.fl_str_mv 2015-06
2015-06-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/1822/36450
url http://hdl.handle.net/1822/36450
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv http://www3.eeg.uminho.pt/publications/NIMAwp58.pdf
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Universidade do Minho. Núcleo de Investigação em Microeconomia Aplicada (NIMA)
publisher.none.fl_str_mv Universidade do Minho. Núcleo de Investigação em Microeconomia Aplicada (NIMA)
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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