This paper uses plant-level data to document the joint adjustment of capital and employment. The data are analyzed through the lens of a model that integrates features from influential theories of costly capital and labor adjustment. Although the model is rich enough to account for several...

This paper studies individual and plant-wide adjustment in days worked. Matched firm-worker data for North-East Italy show signicant variation in mean days worked per month within plants: a one-standard deviation change amounts to about four days of worker per month. The paper then looks within...