Cooper, Russell; Willis, Jonathan - In: Review of Economic Dynamics 12 (2009) 4, pp. 632-647
This paper studies the aggregate implications of micro-level labor adjustment costs. Caballero and Engel (1993) find a … as moments in an indirect inference procedure to infer the underlying labor adjustment costs. We specify a dynamic … optimization problem at the plant level, allowing for both convex and non-convex adjustment costs. Consistent with evidence at the …