A Q-model of labour demand
Cristina Barceló ()
No 626, Banco de España Working Papers from Banco de España
This paper studies the labour demand using a Q model in which labour and capital entail adjustment costs. The estimates are based on an unbalanced panel of Spanish firms over the period 1989-96. The corresponding Q variable for labour is significant in explaining hiring rates. Its estimated coefficient varies across sectors in a way that suggests that the use of temporary labour is more widespread in those economic sectors that incur smaller costs of adjusting labour factor due to the specific characteristics of their technology and economic activity. Interaction effects between investment and labour demands are also observed in their adjustment costs.
Keywords: q model; adjustment costs; labour demand; panel data (search for similar items in EconPapers)
JEL-codes: J23 J32 E22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
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Persistent link: http://EconPapers.repec.org/RePEc:bde:wpaper:0626
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