Trapeznikova, Ija (2012) Employment Adjustment and Labor Utilization.
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Standard models that formalize and assess the impact of labor adjustment costs on labor demand suppose that firms can only change the size of their workforce (the extensive margin) and not the number of hours of their existing employees (the intensive margin). I relax this assumption and propose a dynamic general equilibrium model that introduces labor adjustment on both intensive and extensive margins. I calibrate the model to a matched employer-employee panel of Danish firms. I then simulate two labor market policies aimed at promoting job creation: an introduction of hiring subsidies and a reduction in the official workweek.
This is a Draft version This version's date is: 8/2012 This item is not peer reviewed
https://repository.royalholloway.ac.uk/items/97c3cdd7-e938-b462-91ab-376ddcb724ae/7/
Deposited by Research Information System (atira) on 03-Jul-2014 in Royal Holloway Research Online.Last modified on 03-Jul-2014