Skill Shortages and Firms’ Employment Behaviour
AbstractThis study investigates the effects of skill shortages on the dynamics of employment at the firm level for UK manufacturing between 1984-94. We find that shortages of skilled labour have a statistically significant effect on firms’ employment behaviour. It has a positive effect on firms’ adjustment costs leading to employment being more sluggish to respond when the labour market is tight, implying that employment adjustment will be more responsive in the downward direction.
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Bibliographic InfoPaper provided by National Institute of Economic and Social Research in its series NIESR Discussion Papers with number 240.
Date of creation: May 2004
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- NEP-ALL-2005-10-29 (All new papers)
- NEP-BEC-2005-10-29 (Business Economics)
- NEP-LAB-2005-10-29 (Labour Economics)
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- Bert Minne & Marc van der Steeg & Dinand Webbink, 2008. "Skill gaps in the EU: role for education and training policies," CPB Document 162, CPB Netherlands Bureau for Economic Policy Analysis.
- Mok, Penny & Mason, Geoff & Stevens, Philip & Timmins, Jason, 2012. "A Good Worker is Hard to Find: Skills Shortages in New Zealand Firms," Occasional Papers 12/5, Ministry of Economic Development, New Zealand.
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