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Labour Hoarding during the Crisis: Evidence for selected New Member States from the Financial Crisis Survey

Author

Listed:
  • Sandra M. Leitner

    () (The Vienna Institute for International Economic Studies, wiiw)

  • Robert Stehrer

    () (The Vienna Institute for International Economic Studies, wiiw)

Abstract

During economic downturns, labour hoarding becomes an attractive human resource strategy if sizeable search and training costs render hiring and training new workers too costly. The paper sheds light on the prevalence and extent of labour hoarding in five New EU Member States and Turkey during the global financial crisis, which spread quickly like wildfire after the bankruptcy of Lehman Brothers in September 2008. It applies a unique firm-level panel, constructed by merging the World Bank Financial Crisis Survey (FCS) with the Business Environment and Enterprise Performance survey (BEEPs) and demonstrates that labour hoarding was a widely used strategy among entrepreneurs during the crisis. Furthermore, labour hoarding was particularly frequent among innovators whose substantial R&D-related training costs and extensive search costs for knowledgeable and experienced R&D personnel rendered labour hoarding more cheaply.

Suggested Citation

  • Sandra M. Leitner & Robert Stehrer, 2012. "Labour Hoarding during the Crisis: Evidence for selected New Member States from the Financial Crisis Survey," wiiw Working Papers 84, The Vienna Institute for International Economic Studies, wiiw.
  • Handle: RePEc:wii:wpaper:84
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    File URL: https://wiiw.ac.at/labour-hoarding-during-the-crisis-evidence-for-selected-new-member-states-from-the-financial-crisis-survey-dlp-2632.pdf
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    References listed on IDEAS

    as
    1. Olga Bohachova & Bernhard Boockmann & Claudia M. Buch, 2011. "Labor Demand During the Crisis: What Happened in Germany?," CESifo Working Paper Series 3625, CESifo Group Munich.
    2. Keller, Dietmar & Jungnickel, Rolf, 2003. "Foreign-owned Firms in the German Labour Market," HWWA Discussion Papers 233, Hamburg Institute of International Economics (HWWA).
    3. J. David Brown & John S. Earle, "undated". "The Reallocation of Workers and Jobs in Russian Industry: New Evidence on Measures and Determinants," Upjohn Working Papers and Journal Articles jse20031, W.E. Upjohn Institute for Employment Research.
    4. Anton Jevcak & Ralph Setzer & Massimo Suardi, 2010. "Determinants of Capital Flows to the New EU Member States Before and During the Financial Crisis," European Economy - Economic Papers 2008 - 2015 425, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    5. Martin Dietz & Michael Stops & Ulrich Walwei, 2010. "Safeguarding Jobs through Labor Hoarding in Germany," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 61(Supplemen), pages 125-166.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. repec:tei:journl:v:10:y:2017:i:2:p:73-84 is not listed on IDEAS
    2. Dachs, Bernhard & Hud, Martin & Koehler, Christian & Peters, Bettina, 2016. "Employment effects of innovations over the business cycle: Firm-level evidence from European countries," ZEW Discussion Papers 16-076, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    3. repec:prg:jnlpep:v:2017:y:2017:i:3:id:617:p:345-359 is not listed on IDEAS
    4. Stephane Guimbert & Remco Oostendorp, 2016. "Risk Coping by Firms during the Crisis," Economic Development and Cultural Change, University of Chicago Press, vol. 65(1), pages 87-118.
    5. Michael Moritz & Bastian Stockinger & Merlind Trepesch, 2017. "Multinational Resilience or Dispensable Jobs? German FDI and Employment in the Czech Republic Around the Great Recession," Prague Economic Papers, University of Economics, Prague, vol. 2017(3), pages 345-359.

    More about this item

    Keywords

    global financial crisis; labour hoarding; New Member States; firm level analysis;

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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