This paper studies the interactions between financing constraints and the employment decisions of firms when both fixed-term and permanent employment contracts are available. We first develop a dynamic model that shows the effects of financing constraints and firing costs on employment...

A link between lack of employment and poverty is often made implicitly, but can be difficult to enumerate in a satisfactory manner. We would therefore like to ask the question: to what extent does acquiring employment increase a poor household’s probability of exiting poverty? Register data...