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Wage rigidities may induce firms to perform adjustments along the employment margin as an alternative way to react to shocks.
In this way, firms can exploit flexibility on the employment margin in order to adjust their average labour cost.
We perform regressions at the firm level to evaluate the relationship between the measure of wage rigidity described above and firms' adjustments in the employment margin and in their average wage per employee during the recent recession.
I report comparatively higher levels (80+percentt is not uncommon) because of my focus on the weekly employment margin (e.g., including JSA as an implicit tax) and perhaps because of my treatment of indirect taxes.
We find that there is a wage employment trade-off also as far as their adjustment is concerned: firms structurally characterized by higher wage rigidity adjusted more often along the employment margin by increasing their turnover in the period 2009 2013.
Similar(54)
Japan's corporate managers have long focused on expanding market share at the expense of profitability, adding high-employment, low-margin business lines.
The objectives pursued are maximization of gross margin, employment in agriculture, land use naturalness and traditional rural landscape, and minimization of production costs and use of agrochemicals.
The ONS suggests a couple of explanations, but most are purely speculative: Welfare benefits for families have got stingier and some have been restricted; that might have put off some women at the margin; employment has become less stable and less well-paid.
I find that the monthly wage of native workers covered by fixed-term contracts decreases in response to immigration, while employment is the margin through which native workers on indefinite-term contracts is affected.
AMERICA'S recession was cruel to capital and labour: both employment and profit margins collapsed.
Banned from entering towns, Gypsies found employment on the margins of society as metal workers, entertainers and thieves.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com