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  • We develop a simple theoretical model showing that, by adding to the adjustment costs associated with permanent contracts, local social pressure against dismissals creates an incentive for CEOs to rely on fixed-term contracts, in an attempt to escape social pressure. Using linked employer-employee data, we show that establishments located closer to headquarters have higher shares of fixed-term contracts in hiring than those located further away whenever firms' headquarters are located in self-centered communities and the CEO not only works but also lives there. We show that these findings can only be explained by local social pressure. (xsd:string)
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  • 2021 (xsd:gyear)
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  • 2021 (xsd:gyear)
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  • 10.1016/j.jebo.2021.05.027 ()
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  • 0167-2681 ()
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  • Escaping social pressure: Fixed-term contracts in multi-establishment firms (xsd:string)
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  • In Journal of Economic Behavior & Organization, 188, 697-715, 2021 (xsd:string)
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  • 2021 (xsd:string)
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  • 188 (xsd:string)