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Financing costs supported by companies and their long term impact on careers

Hautes Études Commerciales de Paris - JOUY-EN-JOSAS - 2015

Our research project will attempt to link finance to labor economics, a subject which has not been studied much so far. We wish to study the way study the short and long term impact of companies’ access to financing (and its variations over time) on employment composition. Negative financial shocks have been studied (Boeri, Garibaldi and Moen, 2012), but our project will focus on positive shocks. Finance theory predicts rapid growth for sectors which can access very favorable financing conditions. It is unlikely that these developments take place without affecting job composition, consequently employees will develop sector specific competences. The questions is, what do these persons become when the favorable financing conditions fade away?