Firms’ adjustment during times of crisis

Ana Lamo

Research Bulletin, 2013, vol. 18, 9-11

Abstract: Cutting costs is the prevailing adjustment strategy used by European firms during the early stages of the recent financial crisis, with labour costs being more commonly adjusted than non-labour costs. It is remarkable that not even in the worst crisis since the Great Depression firms cut base wages in an attempt to protect jobs. How they cut labour costs substantially depends on countries’ labour market institutions. JEL Classification: J30, J32, J33, J51

Keywords: labour costs; margins; demand and credit shocks; employment (search for similar items in EconPapers)
Date: 2013-04
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