A Model of Labour Demand with Linear Adjustment Costs

This paper formulates a discrete-time model to study the effects of firing costs on labour demand by a firm facing linear adjustment costs under serially independent productivity shocks. We show that a rise in firing costs reduces the firm's marginal propensities to hire and fire, and may increase or decrease its average steady-state labour demand.

MoreLess

Year of publication:	1992-08
Authors:	Bentolila, Samuel ; Saint-Paul, Gilles
Institutions:	C.E.P.R. Discussion Papers
Subject:	Firing Costs \| Labour Demand \| Unemployment

Online Resource

Check full text access |

More access options

Check Google Scholar

In German libraries (KVK)

I need help

More details

Extent:	application/pdf
Series:	CEPR Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	Number 690
Classification:	J23 - Employment Determination; Job Creation; Demand for Labor; Self-Employment
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005498198