HYSTERESIS IN THE DYNAMICS OF EMPLOYMENT

• Type: Article in International Scientific Journal
• Date: 2012

Authors

Paulo R Mota (Author) FEP; Jose Varejao (Author) FEP; Paulo B Vasconcelos (Author) FEP

Journal

Title: Metroeconomica

Vol. 63 No. 4

Pages: 661-692

ISSN: 0026-1386

Publisher: Wiley-Blackwell

Indexing

ISI Web of Knowledge - 23 Citations

ISI Web of Science

Scopus - 21 Citations

Scientific classification

FOS: Social sciences > Economics and Business

CORDIS: Social sciences

Other information

Authenticus ID: P-002-489

DOI: 10.1111/j.1467-999x.2012.04159.x

Abstract (EN): In this paper, we derive a micro model of employment demand with hysteresis whereby firms can adjust along an intensive (employment) and an extensive (hours of work) margin. A mechanism of aggregation over heterogeneous firms is used to generate the corresponding aggregate dynamics. Longitudinal micro monthly data on a representative sample of Portuguese manufacturing firms are used in the empirical analysis. Our results indicate that signs of hysteresis found at the micro level do not vanish completely by aggregation and that hysteresis is magnified by the existence of an additional margin of adjustment (the hours adjustment margin).

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 32