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Contingent worksharing

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  • Piccirilli, Giulio
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    Abstract

    In a setting that focuses on efficient dynamic hours-workers substitution we show that contingent worksharing contributes to worker retention during bad business spells and to sustained hiring during good spells. As a consequence, average employment increases on both accounts. We also show that worksharing interacts with firing costs in affecting workforce decisions and determines the sign of the employment impact from an increase in firing restrictions.

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    File URL: http://www.sciencedirect.com/science/article/B6WWP-4W4TXYB-1/2/d779dc6192fb8358bbd86e6cd22c5774
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    Bibliographic Info

    Article provided by Elsevier in its journal Research in Economics.

    Volume (Year): 63 (2009)
    Issue (Month): 2 (June)
    Pages: 135-143

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    Handle: RePEc:eee:reecon:v:63:y:2009:i:2:p:135-143

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    Web page: http://www.elsevier.com/locate/inca/622941

    Related research

    Keywords: Temporary worksharing Firing costs Stochastic methods;

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    1. Giuseppe Bertola, 1991. "Labor Turnover Costs and Average Labor Demand," NBER Working Papers 3866, National Bureau of Economic Research, Inc.
    2. Hamermesh, Daniel S, 1989. "Labor Demand and the Structure of Adjustment Costs," American Economic Review, American Economic Association, vol. 79(4), pages 674-89, September.
    3. Marzio Galeotti & Louis J. Maccini & Fabio Schiantarelli, 2002. "Inventories, employment and hours," Working Papers 0202, University of Bergamo, Department of Economics.
    4. Paul R. Krugman, 1988. "Target Zones and Exchange Rate Dynamics," NBER Working Papers 2481, National Bureau of Economic Research, Inc.
    5. Dixit, Avinash & Pindyck, Robert S & Sodal, Sigbjorn, 1999. "A Markup Interpretation of Optimal Investment Rules," Economic Journal, Royal Economic Society, vol. 109(455), pages 179-89, April.
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