Captive Financialization and Employment

• In Event: 1184 - Section on Organizations, Occupations, and Work Refereed Roundtable Session
  In Refereed Roundtable 100min: Table 19. Employment and Job Searching

Abstract

Financialization literature has convincingly shown that organizations’ increased investment in financial assets and reliance on financial income has depressed wages and limited employment. The majority of these studies have been conducted at the industry level and have aggregated all forms on financial revenue. I argue that this aggregation disguises financialization’s differing effects on employment. I find that captive financialization, the increased reliance on revenue from financing the sale of the firm’s own products, differs from broad financialization and has the opposite effect on employment. Periods with greater revenue from captive financing are associated with greater increases in employment in subsequent periods.

Author

• Colin Birkhead, Duke University