Dynamics of labor demand: Evidence from plant-level observations and aggregate implications
John Haltiwanger and
Jonathan Willis ()
Research in Economics, 2015, vol. 69, issue 1, 37-50
This paper studies the dynamics of labor demand at the plant level to quantify labor adjustment costs. At the plant level, in contrast to time-series observations, the correlation of hours and employment growth is negative while hours and employment growth are about equally volatile. We specify and estimate the parameters of a plant-level dynamic optimization problem using simulated method of moments to match these plant-level observations. Our findings indicate that non-convex adjustment costs are critical for explaining plant-level observations on hours and employment adjustment.
Keywords: Labor dynamics; Adjustment costs; Firm-level data (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: Dynamics of Labor Demand: Evidence from Plant-level Observations and Aggregate Implications (2004)
Working Paper: Dynamics of labor demand: evidence from plant-level observations and aggregate implications (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:reecon:v:69:y:2015:i:1:p:37-50
Access Statistics for this article
Research in Economics is currently edited by Federico Etro
More articles in Research in Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().