Summary We make several extensions to the recent literature on job loss while modernizing the very early job-displacement literature. After constructing a dynamic model of two-sided learning between a firm and its workers, we estimate it using personnel data from Fokker Aircraft that cover the...

This study discusses the nature of adjustment costs, which underlie the dynamic theory of input demand. We examine the implications of the conventional assumption that they are quadratic-symmetric and of various alternatives. A recent rapidly growing literature based on microeconomic data shows...

Wemake several extensions to the recent literature on job loss whilemodernizing the very early job-displacement literature. After constructing a dynamicmodel of two-sided learning between a firm and its workers, we estimate it using personnel data from Fokker Aircraft that cover the path of...