IDEAS home Printed from https://ideas.repec.org/a/ecb/ecbbox/202400043.html
   My bibliography  Save this article

Higher profit margins have helped firms hoard labour

Author

Listed:
  • Botelho, Vasco

Abstract

Why are there more firms able to hoard labour than before the pandemic? Firm-level estimates suggest that a 1 percentage point increase in the profit margin of a firm raises the likelihood of that firm hoarding labour by 0.2 percentage points. This suggests that the higher profit margins of firms in recent years have, on average, improved their ability to hoard labour when their own economic outlook has worsened. As a result, a tightening of profit margins may have implications for employment growth. JEL Classification: E24, J23

Suggested Citation

  • Botelho, Vasco, 2024. "Higher profit margins have helped firms hoard labour," Economic Bulletin Boxes, European Central Bank, vol. 4.
    • Handle: RePEc:ecb:ecbbox:2024:0004:3
    as

    Download full text from publisher

    File URL: https://www.ecb.europa.eu//press/economic-bulletin/focus/2024/html/ecb.ebbox202404_03~c65ab9309a.en.html
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Labour hoarding; Labour market; Profit margins; SAFE;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecb:ecbbox:2024:0004:3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Official Publications (email available below). General contact details of provider: https://edirc.repec.org/data/emieude.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.