How Important is the Intensive Margin of Labor Adjustment?
AbstractUsing new quarterly data for hours worked in OECD countries, Ohanian and Raffo (2011) argue that in many OECD countries, particularly in Europe, hours per worker are quantitatively important as an intensive margin of labor adjustment, possibly because labor market frictions are higher than in the US. I argue that this conclusion is not supported by the data. Using the same data on hours worked, I nd evidence that labor market frictions are higher in Europe than in the US, like Ohanian and Raffo, but also that these frictions seem to affect the intensive margin at least as much as the extensive margin of labor adjustment.
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Bibliographic InfoPaper provided by Barcelona Graduate School of Economics in its series Working Papers with number 579.
Date of creation: Oct 2011
Date of revision:
hours worked; intensive margin labor adjustment;
Other versions of this item:
- Thijs van Rens, 2011. "How important is the intensive margin of labor adjustment?," Economics Working Papers 1285, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2011.
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-15 (All new papers)
- NEP-LAB-2012-05-15 (Labour Economics)
- NEP-MAC-2012-05-15 (Macroeconomics)
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