Employment dynamics and the structure of labor adjustment costs
By: by José Varejô, Pedro Portugal
Contributors: Portugal, Pedro.l
Series: Discussion paper -- no. 1922; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) -- no. 1922
Publisher: IZA
Published: 2006
Place of publication: Bonn, Germany
Language: eng
Format: [electronic resource] /
Subjects: Labor market; Structural adjustment (Economic policy)
Description: "In this paper we document the patterns of employment adjustment at the micro-level. We find clear evidence of lumpy adjustment consistent with the presence of non-convexities in the adjustment technology - inaction is pervasive, action spells are short-lived, extreme adjustment episodes occur and are responsible for a non-trivial share of employment adjustment. We also find that the probability of employment adjustment increases with the duration of inaction (positive duration dependence). The skill structure of the workforce, the type of employment contract and the proportion of low tenure workers, which we interpret as proxies for the magnitude of adjustment costs, all influence the probability of adjustment"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Title from PDF file as viewed on 1/18/2006.

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