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ADJUSTMENT COSTS, FIRM RESPONSES, AND MICRO VS. MACRO LABOR SUPPLY ELASTICITIES: EVIDENCE FROM DANISH TAX RECORDS
ADJUSTMENT COSTS FIRM RESPONSES
2015/7/23
We show that the e§ects of taxes on labor supply are shaped by interactions between
adjustment costs for workers and hours constraints set by Örms. We develop a model
in which Örms post jo...
I estimate adjustment costs for labor and capital from the Euler equations for factor demand. For both factors, I find relatively strong evidence against substantial adjustment costs. My estimates use...
An Analysis of Labour Adjustment Costs in Unionized Economies
Unions labour adjustment costs Markov perfect equilibria
2013/10/17
In this paper we conduct a theoretical analysis of the implications of a union which can exploit the existence of firm labour adjustment costs. We consider a model involving a large number of identica...