Economics at your fingertips  

A Q-model of labour demand

Cristina Barceló ()

No 626, Working Papers from Banco de España, Working Papers Homepage

Abstract: 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
Date: 2006-10
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link) ... o/06/Fic/dt0626e.pdf First version, October 2006 (application/pdf)

Related works:
Journal Article: A Q-model of labour demand (2007) Downloads
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:

Access Statistics for this paper

More papers in Working Papers from Banco de España, Working Papers Homepage Contact information at EDIRC.
Series data maintained by María Beiro. Electronic Dissemination of Information Unit. Research Department. Banco de España ().

Page updated 2017-11-20
Handle: RePEc:bde:wpaper:0626