Dynamics of labour and capital adjustment
Subtitle: a comparison of Germany and the Netherlands
By: by Michael Polder, Sher Verick.
Contributors: Verick, Sher.
Series: Discussion paper ;; no. 1212; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) ;; no. 1212
Publisher: IZA
Published: 2004
Place of publication: Bonn, Germany
Language: eng
Format: Electronic resource
Subjects: Labor market -- Netherlands.; Capital investments -- Netherlands.; Labor market -- Germany.; Capital investments -- Germany.
Description: "In this paper we investigate the dynamic adjustment of labour and capital in German and Dutch firms. The Dutch labour market is characterised by greater flexibility in wages and work arrangements in comparison to Germany. These institutional differences imply that employment dynamics in the two countries should differ, and in particular, labour adjustment in the Netherlands should be more responsive to economic changes. On the other hand, there is unlikely to be such a divergence in capital dynamics as investment conditions are similar. Our results are consistent with this hypothesis. Furthermore, there is no evidence that labour market regulations in the two countries affect the dynamics of capital adjustment"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Includes bibliographical references.
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