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Employment security and the demand for labour in Europe

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  • Julian Morgan

Abstract

This paper analyses the impact of employment security on labour demand. The approach taken is to estimate a dynamic labour demand function that allows for the effect of changes in a measure of employment security derived from surveys of employers. The estimation uses panel data on employment (both in terms of the total number of employees and total hours worked) for seven European countries for the period 1981-1994. The results suggest that employment security can have significant effects in slowing down the dynamic adjustment of labour demand. The paper also finds some (less robust) evidence that employment security can increase the long run level of labour demand in terms of total hours, but not the number of persons employed.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010017659
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 33 (2001)
Issue (Month): 14 ()
Pages: 1763-1774

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Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1763-1774

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Cited by:
  1. Mourre, Gilles, 2004. "Did the pattern of aggregate employment growth change in the euro area in the late 1990s?," Working Paper Series 0358, European Central Bank.

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