Employment Adjustment versus Hours Adjustment
Is Job Security Desirable
Bibliographic Data
| ID | 9721784 |
|---|---|
| Authors | Seamus Hogan, Christopher Ragan |
| Year | 1995 |
| Volume | 62 |
| Issue | 248 |
| Pages | 495 |
| Publication date | 1995-11-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | JSTOR (PUBLISHER) |
| DOI | 10.2307/2554673 |
| OpenAlex | W1977175376 |
| Language | EN |
| References cited | 4 |
Firms can adjust to shocks by laying off and hiring workers or by adjusting the hours worked by each worker. Adjustment of hours provides job security for employed workers. Adjustment of employment generates higher labor market turnover and, thus, better job prospects for the unemployed. Since high turnover lowers the expected cost of being laid off by reducing the expected duration of unemployment, there is a strategic complementarity between firms in the provision of job security. This gives the possibility of multiple equilibria with different amounts of turnover. Copyright 1995 by The London School of Economics and Political Science
Complementarity (molecular biology) · Duration (music) · Economics · Job creation · Job security · Labour economics · Macroeconomics · Management · Turnover · Unemployment · Work (physics) · Economic theories and models · Global trade and economics · Labor market dynamics and wage inequality
| Citation velocity | historical |
|---|---|
| Highly cited | No |