Skill Shortages and Firms' Employment Behaviour

Philip Stevens ()
Authors registered in the RePEc Author Service: Martin Robert Weale ()

No 240, National Institute of Economic and Social Research (NIESR) Discussion Papers from National Institute of Economic and Social Research

Abstract: This study investigates the effects of skill shortages on the dynamics of employment at the firm level for UK manufacturing between 1984-94. We find that shortages of skilled labour have a statistically significant effect on firms' employment behaviour. It has a positive effect on firms' adjustment costs leading to employment being more sluggish to respond when the labour market is tight, implying that employment adjustment will be more responsive in the downward direction.

Date: 2004-05
New Economics Papers: this item is included in nep-bec and nep-lab
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Journal Article: Skill shortages and firms' employment behaviour (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:nsr:niesrd:240

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