English, Article, Journal or magazine article edition: Labour demand, flexible contracts and financial factors: new evidence from Spain Andrew Benito; Ignacio Hernando

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Bookmark: http://trove.nla.gov.au/version/106424
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Labour demand, flexible contracts and financial factors: new evidence from Spain
Author
  • Andrew Benito
  • Ignacio Hernando
Physical Description
  • preprint
Notes
  • We estimate models of labour demand for a panel of 3,400 Spanish manufacturing firms over the period 1985-2001. We examine the roles of flexible labour through temporary contracts, financial factors and a policy reform in 1997 affecting permanent contracts by lowering payroll taxes and dismissal costs. Compared to permanent employment, the demand for flexible labour displays (i) greater sensiti vity to financial factors (ii) greater cyclical sensitivity (iii) a larger average wage elasticity (iv) less inertia. Our analysis of the 1997 policy reform finds an effect of payroll taxes on employment. A 5 percentage point reduction in the payroll tax increases labour demand by 8 per cent.
  • labour demand, financial pressure, temporary contracts
  • RePEc:bde:wpaper:0312
Language
  • English
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