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Labour Market Flexibility and Employment Adjustment: Micro Evidence from UK Establishments

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  • Haskel, Jonathan
  • Kersley, Barbara
  • Martin, Christopher

Abstract

In this paper, the authors study how firms react to demand shocks, examining how different aspects of flexibility shape their responses. Their main findings are that very few firms choose to adjust to price in response to a demand shock and that firms with more flexibility are more likely to respond to demand shocks by adjusting employment and hours. The authors' results provide a microeconomic explanation for recent macroeconomic evidence that labor input has become more closely aligned to the business cycle. Copyright 1997 by Royal Economic Society.

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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 49 (1997)
Issue (Month): 3 (July)
Pages: 362-79

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Handle: RePEc:oup:oxecpp:v:49:y:1997:i:3:p:362-79

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Cited by:
  1. repec:iab:iabmit:v:31:i:4:p:637-647 is not listed on IDEAS
  2. Simon Hall & Mark Walsh & Anthony Yates, 1997. "How do UK companies set prices?," Bank of England working papers, Bank of England 67, Bank of England.
  3. Axel Dreher & Noel Gaston, 2007. "Has Globalisation Really had no Effect on Unions?," Kyklos, Wiley Blackwell, Wiley Blackwell, vol. 60(2), pages 165-186, 05.
  4. Kate Bishop & Tomasz Mickiewicz, 2003. "While Labour Hoarding May Be Over, Insiders’ Control Is Not. Determinants Of Employment Growth In Polish Large Firms, 1996-2001," William Davidson Institute Working Papers Series, William Davidson Institute at the University of Michigan 2003-593, William Davidson Institute at the University of Michigan.
  5. Robertson, Raymond & Dutkowsky, Donald H., 2002. "Labor adjustment costs in a destination country: the case of Mexico," Journal of Development Economics, Elsevier, Elsevier, vol. 67(1), pages 29-54, February.
  6. Buddelmeyer, Hielke & Mourre, Gilles & Ward-Warmedinger, Melanie, 2005. "Part-time work in EU countries: labour market mobility, entry and exit," Working Paper Series, European Central Bank 0460, European Central Bank.
  7. Buddelmeyer, Hielke & Mourre, Gilles & Ward-Warmedinger, Melanie E., 2004. "Recent Developments in Part-Time Work in EU-15 Countries: Trends and Policy," IZA Discussion Papers 1415, Institute for the Study of Labor (IZA).
  8. Buddelmeyer, Hielke & Mourre, Gilles & Ward-Warmedinger, Melanie E., 2004. "The Determinants of Part-Time Work in EU Countries: Empirical Investigations with Macro-Panel Data," IZA Discussion Papers 1361, Institute for the Study of Labor (IZA).
  9. Kölling, Arnd, 1998. "Dynamische Arbeitsnachfrage und asymmetrisches Anpassungsverhalten in der Bundesrepublik Deutschland : eine Untersuchung mit Daten aus dem IAB-Betriebspanel (Dynamic labour demand and asymmetrical adj," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 31(4), pages 637-647.
  10. Eric J. Bartelsman & Pieter A. Gautier & Joris de Wind, 2010. "Employment Protection, Technology Choice, and Worker Allocation," Tinbergen Institute Discussion Papers, Tinbergen Institute 10-042/3, Tinbergen Institute.
  11. Jiun-Nan Pan & Kuang-Ta Lo & Jr-Tsung Huang, 2008. "Are Rich Earners Time-Privileged in Taiwan? The Evidence from 1981 to 2006," Journal of Family and Economic Issues, Springer, Springer, vol. 29(4), pages 584-600, December.
  12. Francesca Bettio & Samuel Rosenberg, 1999. "Labour Markets and Flexibility in the 1990s: The Europe-USA opposition revisited," International Review of Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 13(3), pages 269-279.
  13. Tomasz Mickiewicz & Christopher Gerry & Kate Bishop, . "Privatisation, Corporate Control and Employment Growth: Evidence From A Panel of Large Polish Firms, 1996-2002," Working Papers, CENTRE FOR THE STUDY OF ECONOMIC AND SOCIAL CHANGE IN EUROPE,School of Slavonic and East European Studies,University College London (SSEES,UCL) 47 Key Words: employment,, CENTRE FOR THE STUDY OF ECONOMIC AND SOCIAL CHANGE IN EUROPE,School of Slavonic and East European Studies,University College London (SSEES,UCL).
  14. Gaston, N., 2000. "Unions and the Decentralisation of Collective Bargaining in a Globalising World," ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 0495, Institute of Social and Economic Research, Osaka University.
  15. Hielke Buddelmeyer & Gilles Mourre & Melanie Ward, 2004. "The determinants of part-time work in EU countries: empirical investigations with macro-panel data - Hielke Buddelmeyer, Gilles Mourre and Melanie Ward," European Economy - Economic Papers, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission 213, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
  16. Stuart Glosser & Lonnie Golden, 2005. "Is labour becoming more or less flexible? Changing dynamic behaviour and asymmetries of labour input in US manufacturing," Cambridge Journal of Economics, Oxford University Press, Oxford University Press, vol. 29(4), pages 535-557, July.
  17. Mika Haapanen, 1998. "Internal Migration and Labour Market Transitions of Unemployment Workers," Discussion Papers, Government Institute for Economic Research Finland (VATT) 179, Government Institute for Economic Research Finland (VATT).

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