Labor Supply Adjustment over the Business Cycle

Donald A. Larson

ILR Review, 1981, vol. 34, issue 4, 591-595

Abstract: This study extends one by Kalachek, Raines, and Larson (in the April 1979 Review ) of the speed with which labor supply adjusts to changes in demand. The present study uses data from the Panel Study of Income Dynamics that permit a more precise appraisal of whether the speed of supply response varies over the business cycle. Analysis of data for the period 1972–76, during which a severe recession occurred, shows, as predicted, that as unemployment increases workers are less able to adjust their hours of work in response to changes in their health, wages, and other factors that determine desired work levels. The author also finds, however, that the more rapid response of supply in the recovery phase makes peak-to-peak adjustment relatively complete.

Date: 1981
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/001979398103400408 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:ilrrev:v:34:y:1981:i:4:p:591-595

DOI: 10.1177/001979398103400408

Access Statistics for this article

More articles in ILR Review from Cornell University, ILR School
Bibliographic data for series maintained by SAGE Publications ().