Procyclical Labour Productivity, Increasing Returns to Labour and Labour Hoarding in Car Assembly Plant Employment
This paper empirically examines the sources of procyclicality in labor productivity for a panel of U.S. auto assembly plants from 1978-85. An employment demand equation, derived from a cost-minimization model, is estimated to test for the presence of increasing returns and labor hoarding on the employment dimension. The data used match employment and wage data from the BLS Current Establishment Survey to publically available data on output and the nature of production at these plants. Statistical evidence in favor of both increasing returns and hoarding is found. These findings suggest that the observed procyclicality of labor productivity in this industry is due to both the nature of technology (increasing returns) as well as attempts by plant managers to maintain a reserve of experienced workers (labor hoarding). Copyright 1992 by Royal Economic Society.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 102 (1992)
Issue (Month): 413 (July)
|Contact details of provider:|| Postal: 2 Dean Trench Street, Westminster, SW1P 3HE|
Phone: +44 20 3137 6301
Web page: http://www.res.org.uk/
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishers.co.uk/asp/journal.asp?ref=0013-0133|
When requesting a correction, please mention this item's handle: RePEc:ecj:econjl:v:102:y:1992:i:413:p:860-73. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.