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Employment Adjustment in Portugal: Evidence from Aggregate and Firm Data

Author

Listed:
  • Addison, John T.

    (Durham University Business School)

  • Teixeira, Paulino

    (University of Coimbra)

Abstract

This paper examines the pattern of employment adjustment in Portugal. First, the issue is addressed using a long time series of aggregate data. Although the employment data show persistence, there is nonetheless a fairly rapid rate of employment adjustment. Second, a much shorter time series of firm data is used to check the persistence detected at aggregate level, and also to examine the contribution of atypical work over the cycle. Consistent with the aggregate evidence, and despite stronger employment inertia, there is no suggestion in the firm panel that labour demand is cyclically unstable.

Suggested Citation

  • Addison, John T. & Teixeira, Paulino, 2001. "Employment Adjustment in Portugal: Evidence from Aggregate and Firm Data," IZA Discussion Papers 391, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp391
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    References listed on IDEAS

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    Cited by:

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    3. Andrew Benito & Ignacio Hernando, 2003. "Labour demand, flexible contracts and financial factors: new evidence from Spain," Working Papers 0312, Banco de España.

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    More about this item

    Keywords

    labor demand; employment protection; Employment adjustment; error-correction model; panel estimation;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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