VGSF - WU Vienna - LC

Olga Kuzmina, New Economic School

Campus WU D4.0.136 12:00 - 13:00

Organizer WU Vienna

The Fin­ance Brown Bag Sem­inar is held by the In­sti­tute for Fin­ance, Bank­ing and In­sur­ance (WU Vi­enna) and the Vi­enna Gradu­ate School of Fin­ance (VGSF). It serves as a present­a­tion plat­form for PhD stu­dents, fac­ulty mem­bers, and vis­it­ors. An over­view of BBS on the web­site of the In­sti­tute for Fin­ance, Bank­ing and In­sur­ance.

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Decem­ber 4th, 2018, 12:00-13:00, D4.0.136

Olga Kuzmina, New Eco­nomic School

Title: "In­nov­a­tion and the Struc­ture of Em­ploy­ment Con­tracts"

Ab­stract

We ex­ploit the ap­peal­ing in­sti­tu­tional set­ting of the Span­ish labor mar­ket to show that the use of more flex­ible (shorter and cheap­er­-to-ter­min­ate) con­tracts with labor in­creases firm's in­nov­a­tion. We dis­tin­guish between dif­fer­ent types of in­nov­a­tion (fron­tier vs ad­opt­ive,  do­mestic vs im­por­ted tech­no­logy) to shed light on the mech­an­ism be­hind the ef­fect. The evid­ence is con­sist­ent with both flex­ible labor con­tracts re­du­cing fin­an­cial con­straints of the firm, but at the ex­pense of lower hu­man cap­ital in­vest­ment. We build the iden­ti­fic­a­tion strategy on the exo­gen­ous in­ter­-tem­poral and cross-re­gional vari­ation in gov­ern­ment pro­grams, which  aimed at an in­crease in worker job se­cur­ity, and dis­cour­aged firms from us­ing the more flex­ible  ("fixed-term") con­tracts. This set­ting, akin to a nat­ural ex­per­i­ment, al­lows us to identify the ef­fects  of in­terest in the in­stru­mental vari­ables frame­work, also con­trolling for un­ob­served  het­ero­gen­eity.



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