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Macroeconomic Shocks and Firms' Labor Adjustment

Author

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  • Tor Eriksson

    (Department of Economics and Business, Aarhus University)

Abstract

This article discusses some recent research which aims at producing evidence on how firms adjust their employment in response to output shocks using micro-level data and with a particular focus on the relationship between worker and job flows. The evidence presented is mainly based on Danish data, but a brief discussion of cross-country differences and similarities in firmlevel labor adjustment is also provided. For Denmark, remarkable long-term stability in firms’ labor adjustment technologies is observed and the cross-country comparisons reveal striking similarities between countries with very diverse labor market institutions.

Suggested Citation

  • Tor Eriksson, 2013. "Macroeconomic Shocks and Firms' Labor Adjustment," Finnish Economic Papers, Finnish Economic Association, vol. 26(1), pages 25-35, Spring.
    • Handle: RePEc:fep:journl:v:26:y:2013:i:1:p:25-35
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    More about this item

    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
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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