Título: Linear Adjustment Costs and Seasonal Labour Demand: Unemployment Insurance Experience Rating in Retail Trade
Autores: Anderson, Patricia
Fecha: 2011-10-26
2011-10-26
1992-01-01
Publicador: Universidad de Princenton
Fuente:
Tipo: Working Paper
Tema: employment variability
unemployment
insurance experience rateability
labor demand
adjustment costs
Descripción: Standard models of dynamic labor demand rely on the presence of adjustment costs to explain the observed smoothness in employment patterns, although the costs are often difficult to quantify. The experience rating feature of the U.S. Unemployment Insurance (UI) system provides a measurable linear cost of adjustment. Using a unique data set with administrative data on over 8,000 firms, I estimate the effect of a UI-induced linear adjustment cost on seasonal labor demand in retail trade. I find strong support for the large role of adjustment costs in reducing the employment response of firms to seasonal fluctuations in demand.
Idioma: No aplica

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