Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83126
Authors: 
Carlsson, Mikael
Eriksson, Stefan
Gottfries, Nils
Year of Publication: 
2011
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 2006:7
Abstract: 
How important is imperfect competition in the product market for employment dynamics? To investigate this, we formulate a theoretical model of employment adjustment with imperfect competition in the product market, search frictions, and convex adjustment costs. From this model, we derive a structural equation for employment that we estimate on firm-level data. We find that product market demand shocks have significant and quantitatively large effects on employment. Thus, product market imperfections seem to be important for employment dynamics. However, we find no evidence that the tightness of the local labor market affects job creation in existing firms.
Subjects: 
Search-Matching
Job Creation
Unemployment
Labor Demand
JEL: 
E24
J23
J64
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.