Please use this identifier to cite or link to this item:
http://dspace.mediu.edu.my:8181/xmlui/handle/10419/3054| Title: | Labour-market institutions and macroeconomic shocks |
| Keywords: | ddc:330 Arbeitsmarkttheorie Schock Arbeitsmarktflexibilisierung Kündigung Theorie |
| Issue Date: | 16-Oct-2013 |
| Description: | Macroeconomic shocks and labour-market institutions jointly determine employment growth and economic performance. The effect of shocks depends on the nature of these institutions and the effect of institutional change depends on the macroeconomic environment. It follows that a given set of institutions may be appropriate in one epoch and not in another. We derive a dynamic model of labour demand in which the effect of firing costs on labour demand depends on the macroeconomic environment: when the level of macroeconomic activity is expected to drop and/or the trend rate of productivity growth is small, a rise in firing costs affects mainly (and adversely) the hiring decision and not the layoff decision. This makes firing costs harmful to employment when it may appear most appropriate. In contrast, firing costs can raise employment during periods of high growth and positive shocks. Our hypothesis is supported by empirical results using OECD data. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/3054 |
| Other Identifiers: | Labour 1121-7081 17 2003 2 247-270 doi:10.1111/1467-9914.00229 http://hdl.handle.net/10419/3054 ppn:371617316 |
| Appears in Collections: | EconStor |
Files in This Item:
There are no files associated with this item.
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.