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Firing the wrong workers: Financing constraints and labor misallocation

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dc.contributor.author Caggese, Andrea
dc.contributor.author Cuñat, Vicente
dc.contributor.author Metzger, Daniel
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.accessioned 2020-05-25T09:27:03Z
dc.date.available 2020-05-25T09:27:03Z
dc.date.issued 2017-10-01
dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1618
dc.identifier.citation
dc.identifier.uri http://hdl.handle.net/10230/44764
dc.description.abstract Firms consider wages, current and expected productivity as well as firing and hiring costs when firing a worker. Financing constraints distort this intertemporal trade-off, leading firms to sub-optimally fire short-tenured workers with high future expected productivity.We provide empirical evidence of this distortion using matched employer-employee data from the Swedish population between 2000 and 2010. We propose a new empirical strategy that uses credit ratings to identify financing constraints and uses exchange rates and trade data to identify demand shocks. Our empirical results identify an important new misallocation effect of financial frictions that operates within firms across different types of workers.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 1618
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title Firing the wrong workers: Financing constraints and labor misallocation
dc.title.alternative
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2020-05-25T09:25:41Z
dc.subject.keyword labor misallocation
dc.subject.keyword firing decisions
dc.subject.keyword financing constraints
dc.subject.keyword Finance and Accounting
dc.rights.accessRights info:eu-repo/semantics/openAccess


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