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Macroeconomic Shocks and Firms' Labor Adjustment

Tor Eriksson ()

Finnish Economic Papers, 2013, vol. 26, issue 1, 25-35

Abstract: This article discusses some recent research which aims at producing evidence on how firms adjust their employment in response to output shocks using micro-level data and with a particular focus on the relationship between worker and job flows. The evidence presented is mainly based on Danish data, but a brief discussion of cross-country differences and similarities in firmlevel labor adjustment is also provided. For Denmark, remarkable long-term stability in firms’ labor adjustment technologies is observed and the cross-country comparisons reveal striking similarities between countries with very diverse labor market institutions.

JEL-codes: E24 J23 J63 (search for similar items in EconPapers)
Date: 2013
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Handle: RePEc:fep:journl:v:26:y:2013:i:1:p:25-35