A model of labor demand with linear adjustment costs
AbstractThis paper formulates a discrete-time model to study the effects of firing costs on labour demand by a firm facing linear adjustment costs under serially independent productivity shocks. We show that a rise in firing costs reduces the firm's marginal propensities to hire and fire, and may increase or decrease its average steady-state labour demand.
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Bibliographic InfoArticle provided by Elsevier in its journal Labour Economics.
Volume (Year): 1 (1994)
Issue (Month): 3-4 (September)
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Web page: http://www.elsevier.com/locate/labeco
Other versions of this item:
- Bentolila, S. & Saint-Paul, G., 1995. "A model of labour demand with linear adjustment costs," Labour Economics, Elsevier, vol. 2(1), pages 105-105, March.
- Bentolila, S. & Saint-Paul, G., 1992. "A Model of Labour Demand with Linear Adjustment Costs," DELTA Working Papers 92-05, DELTA (Ecole normale supérieure).
- Bentolila, Samuel & Saint-Paul, Gilles, 1992. "A Model of Labour Demand with Linear Adjustment Costs," CEPR Discussion Papers 690, C.E.P.R. Discussion Papers.
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
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