| Budget Amount *help |
¥4,940,000 (Direct Cost: ¥3,800,000、Indirect Cost: ¥1,140,000)
Fiscal Year 2015: ¥130,000 (Direct Cost: ¥100,000、Indirect Cost: ¥30,000)
Fiscal Year 2014: ¥2,470,000 (Direct Cost: ¥1,900,000、Indirect Cost: ¥570,000)
Fiscal Year 2013: ¥2,340,000 (Direct Cost: ¥1,800,000、Indirect Cost: ¥540,000)
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| Outline of Final Research Achievements |
We investigate whether an increasing use of temporary agency workers affects firms’ cost of equity capital. Exploiting a major labor market deregulation in Japan in early 2000s, which removed a legal restriction that had prohibited temporary agency workers from engaging in manufacturing works, we conduct a difference-in-difference estimation and find that cost of capital decreased in manufacturing firms, relative to other firms, after the parliament passed the revised law for deregulation in 2003. Further analysis using variations only within manufacturing firms supports our causal interpretations. Overall, we conclude that firms’ use of temporary agency workers increases their operating flexibility and decreases cost of capital.
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