In a setting that focuses on efficient dynamic hours-workers substitution we show that contingent worksharing contributes to worker retention during bad business spells and to sustained hiring during good spells. As a consequence, average employment increases on both accounts. We also show that worksharing interacts with firing costs in affecting workforce decisions and determines the sign of the employment impact from an increase in firing restrictions.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Luca Nunziata, 2001.
"Labour Market Institutions and the Cyclical Dynamics of Employment,"
Economics Series Working Papers
1999-W26, University of Oxford, Department of Economics.
- Nunziata, Luca, 2003. "Labour market institutions and the cyclical dynamics of employment," Labour Economics, Elsevier, vol. 10(1), pages 31-53, February.
- Marzio Galeotti & Louis J Maccini & Fabio Schiantarelli, 2002.
"Inventories Employment and Hours,"
Economics Working Paper Archive
473, The Johns Hopkins University,Department of Economics.
- Marzio Galeotti & Louis J. Maccini & Fabio Schiantarelli, 2002. "Inventories, Employment and Hours," Boston College Working Papers in Economics 522, Boston College Department of Economics.
- Galeotti, Marzio & Maccini, Louis J. & Schiantarelli, Fabio, 2002. "Inventories, Employment and Hours," IZA Discussion Papers 458, Institute for the Study of Labor (IZA).
- Marzio Galeotti & Louis J. Maccini & Fabio Schiantarelli, 2002. "Inventories, employment and hours," Working Papers (-2012) 0202, University of Bergamo, Department of Economics.
- Domenico J. Marchetti & Francesco Nucci, 2007.
"Pricing Behavior and the Response of Hours to Productivity Shocks,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 39(7), pages 1587-1611, October.
- Marchetti, Domenico J. & Nucci, Francesco, 2006. "Pricing Behaviour and the Response of Hours to Productivity Shocks," CEPR Discussion Papers 5504, C.E.P.R. Discussion Papers.
- Krugman, Paul R, 1991.
"Target Zones and Exchange Rate Dynamics,"
The Quarterly Journal of Economics,
MIT Press, vol. 106(3), pages 669-82, August.
- Giuseppe Bertola, 1991.
"Labor Turnover Costs and Average Labor Demand,"
NBER Working Papers
3866, National Bureau of Economic Research, Inc.
- Bentolila, Samuel & Bertola, Giuseppe, 1990. "Firing Costs and Labour Demand: How Bad Is Eurosclerosis?," Review of Economic Studies, Wiley Blackwell, vol. 57(3), pages 381-402, July.
- Dixit, Avinash & Pindyck, Robert S & Sodal, Sigbjorn, 1999. "A Markup Interpretation of Optimal Investment Rules," Economic Journal, Royal Economic Society, vol. 109(455), pages 179-89, April.
- Daniel S. Hamermesh, 1988.
"Labor Demand and the Structure of Adjustment Costs,"
NBER Working Papers
2572, National Bureau of Economic Research, Inc.
- Hamermesh, Daniel S, 1989. "Labor Demand and the Structure of Adjustment Costs," American Economic Review, American Economic Association, vol. 79(4), pages 674-89, September.
When requesting a correction, please mention this item's handle: RePEc:eee:reecon:v:63:y:2009:i:2:p:135-143. 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: (Zhang, Lei)
If references are entirely missing, you can add them using this form.