Financing constraints and fixed-term employment contracts: evidence from the 2008-09 financial crisis
Autor(a) principal: | |
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Data de Publicação: | 2015 |
Outros Autores: | |
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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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 |
repository.mail.fl_str_mv |
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1799132371225673728 |