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Skill Shortages and Firms’ Employment Behaviour

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Author Info
Philip Stevens ()

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Abstract

This 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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File URL: http://www.niesr.ac.uk/pubs/dps/Dp240.pdf
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Publisher Info
Paper provided by National Institute of Economic and Social Research in its series NIESR Discussion Papers with number 240.

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Date of creation: May 2004
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Handle: RePEc:nsr:niesrd:240

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  1. Bert Minne & Marc van der Steeg & Dinand Webbink, 2008. "Skill gaps in the EU: role for education and training policies," CPB Documents 162, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
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This page was last updated on 2009-11-25.

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