Do Labor Market Rigidities Have Microeconomic Effects? Evidence from Within the Firm

• 成果类型: Article
• 署名作者: Lafontaine, Francine; Sivadasan, Jagadeesh
• 署名单位: University of Michigan System; University of Michigan
• 刊物名称: AMERICAN ECONOMIC JOURNAL-APPLIED ECONOMICS
• ISSN/ISSBN: 1945-7782
• DOI: 10.1257/app.1.2.88
• 发表日期: 2009
• 页码: 88-127
• 关键词: adjustment costs; panel-data; EMPLOYMENT; demand; institutions; ECONOMICS; models

摘要

We exploit a unique outlet-level dataset from a multinational chain with over 2,500 outlets in 43 countries to investigate the effects of labor regulations that protect employment. The dataset contains information on output, materials, and labor costs at a weekly frequency over several years, allowing us to examine the consequences of labor market rigidity at a much more detailed level than has been possible to date. We find that higher labor market rigidity is associated with significantly higher levels of hysteresis. We also find some evidence that labor costs are less responsive to sales revenue in more highly regulated markets. (JEL: E24, J08, J23, K31, M51)