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Skill shortages and firms' employment behaviour

  • Stevens, Philip Andrew

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.sciencedirect.com/science/article/pii/S0927-5371(05)00071-0
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Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 14 (2007)
Issue (Month): 2 (April)
Pages: 231-249

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Handle: RePEc:eee:labeco:v:14:y:2007:i:2:p:231-249
Contact details of provider: Web page: http://www.elsevier.com/locate/labeco

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