scholarly journals FIRMS’ EMPLOYMENT DYNAMICS AND THE STATE OF THE LABOR MARKET

2021 ◽  
pp. 1-37
Author(s):  
Karolina Stadin
Keyword(s):  
Labor Market ◽  
Imperfect Competition ◽  
Adjustment Costs ◽  
Product Market ◽  
Realistic Model ◽  
Matching Theory ◽  
Perfect Competition ◽  
Search And Matching ◽  
Employment Decisions ◽  
Employment Dynamics

According to search and matching theory, a greater availability of unemployed workers should make it easier for a firm to fill a vacancy, but more vacancies at other firms should make recruitment more difficult. Simulating a theoretical model of a firm facing perfect competition in the product market and no convex adjustment costs (standard assumptions in the search and matching literature), I find that shocks to vacancies and unemployment lead to economically significant employment responses. Simulating a more realistic model with imperfect competition in the product market and convex adjustment costs, I find small employment effects of shocks to vacancies and unemployment. In particular, shocks to the number of unemployed seem to be unimportant. Estimating an employment equation on a panel of Swedish firms, I find that neither the number of unemployed workers nor the number of vacancies in the local labor market is important for firms’ employment decisions.

scholarly journals MONETARY PERSISTENCE, IMPERFECT COMPETITION, AND STAGGERING COMPLEMENTARITIES

2009 ◽  
Vol 13 (1) ◽  
pp. 81-106 ◽  
Author(s):  
Christian Merkl ◽  
Dennis Snower
Keyword(s):  
Labor Market ◽  
Imperfect Competition ◽  
Capital Accumulation ◽  
Product Market ◽  
Standard Measure ◽  
Product Markets ◽  
Parameter Values ◽  
Specific Capital ◽  
Do So

This paper explores the influence of wage and price staggering on monetary persistence. We show that, for plausible parameter values, wage and price staggering are complementary in generating monetary persistence. We do so by proposing the new measure of “quantitative inertia,” after discussing weaknesses of the “contract multiplier,” a standard measure of monetary persistence. The existence of complementarities means that beyond understanding how wage and price staggering work in isolation, it is important to investigate their interactions. Furthermore, our analysis indicates that the degree of monetary persistence generated by wage vis-à-vis price staggering depends on the relative competitiveness of the labor and product markets. We show that the conventional finding that wage staggering generates more persistence than price staggering holds under homogeneous capital accumulation. Under firm-specific capital, wage staggering generates more persistence only when the labor market is sufficiently competitive relative to the product market.

Recent Developments in Social Policy in the New European Union

ILR Review ◽  
1994 ◽  
Vol 48 (1) ◽  
pp. 5-27 ◽  
Author(s):  
John T. Addison ◽  
W. Stanley Siebert
Keyword(s):  
European Union ◽  
Labor Market ◽  
Recent Progress ◽  
Adjustment Costs ◽  
Labor Policy ◽  
Market Regulation ◽  
The European Union ◽  
Recent Developments ◽  
Labor Market Regulation ◽  
Future Direction

This paper assesses the recent progress and future direction of labor policy in the European Community, now the European Union. The authors show that most of the mandates foreshadowed under the December 1989 Community Social Charter have now been enacted into law. They analyze the possible costs, as well as the benefits, of these firstphase mandates and show the link between these adjustment costs and the Community's policy of providing subsidies to its poorer member states. They also demonstrate how the new Treaty on European Union, agreed to at Maastricht in December 1991, has increased the scope for Community-level labor market regulation.

Competition, Not Regulation – or Regulated Competition?

2015 ◽  
Vol 6 (3) ◽  
pp. 405-417
Author(s):  
Alexia Herwig
Keyword(s):  
Imperfect Competition ◽  
Burden Of Proof ◽  
Equal Treatment ◽  
Perfect Competition ◽  
Appellate Body ◽  
Treatment Standard ◽  
Regulatory Purpose ◽  
Definition Of ◽  
Regulated Competition ◽  
Domestic Products

GATT Article III:4 aims at equal treatment in respect of competitive opportunities of imports and competing domestic products by preventing protectionism. A key question is whether regulations with heavier burdens on imported products than on domestic products and a valid regulatory purpose are consistent with Article III:4. Inquiry into regulatory purpose under Article III:4 would allow by-passing Article XX whose list of regulatory objectives is a closed one and which puts the burden of proof on the defending WTO member. In EC-Seal Products, the Appellate Body has rejected any role for the regulatory purpose inquiry under Article III:4. This article shows why a purely empirical definition of likeness and less favourable treatment as disparate impact cannot logically lead to a finding of a violation of Article III:4. It then argues that regulatory purpose continues to play a role under Article III:4 because of the centrality of the notion of competition. It proposes to frame that competition as perfect competition. It shows that the adoption of perfect competition as the evaluative benchmark for all of Article III:4 makes better legal sense than starting from imperfect competition for the likeness analysis and perfect competition for the less favourable treatment standard, as is proposed in the literature. It also shows that even in case where imperfect competition is used as the sole benchmark for both parts of Article III:4, an assessment of how regulation interacts with competition continues to play some role.

scholarly journals Les alliances technologiques stratégiques: de la théorie à la situation canadienne

2005 ◽  
Vol 22 (1) ◽  
pp. 63-80 ◽  
Author(s):  
Jorge Niosi ◽  
Maryse Bergeron ◽  
Michèle Sawchuck
Keyword(s):  
Imperfect Competition ◽  
Industrial Sector ◽  
Business Administration ◽  
International Competition ◽  
Perfect Competition ◽  
Processing Technologies ◽  
The Past ◽  
Technological Cooperation ◽  
Japanese Corporations ◽  
Informal Cooperation

Technological cooperation between business enterprises has become common-place over the past ten years or so, following an increase in the uncertainty, risk, and costs of research and development brought about by growing international competition and the unsettling impact of data processing technologies (and to a lesser degree biotechnologies) throughout the entire industrial sector. Strategies in R&D cooperation, first adopted by Japanese corporations, were copied by European firms in the early 80s and then by American and Canadian corporations later on. Governments have got in on the action through policies for encouragement of collective R&D. Current theories in economies and business administration are not very useful for understanding this phenomenon. Neo-classical economies' assumption of perfect competition, as well as dissertations on product obsolescence and transaction costs, permeate theories in business administration and do not help us comprehend this new organizational phenomenon. We have, however, come across some crucial leads towards an explanation in certain models of imperfect competition and in managerial studies on informal cooperation by businesses in R&D.

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