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Firms entering and exiting a market contribute almost as much to employment changes as firms continuing in a market. As much effort should be made to understanding sensitivity to wage changes in entering and exiting firms as to understanding wage elasticities in continuing firms
Persistent link: https://www.econbiz.de/10010523975
Even accounting for the large variance induced by different estimation techniques, one probably cannot say much about the flexibility of different labor markets based on comparisons of the estimated elasticity of demand. Colombia, for example, which has severe restrictions on firing workers, has...
Persistent link: https://www.econbiz.de/10010523976
Data provide only mixed support for the idea that trade liberalization has an impact on own-wage labor demand elasticities. If globalization is making the lives of workers more insecure, it is probably working through some other mechanism
Persistent link: https://www.econbiz.de/10010524236