PRECAUTIONARY DEMAND FOR LABOUR AND FIRM SIZE

Firm Performance and Labour

We explore the impact of labour turnover on firm performance by analysing the predictions of an extension of the efficiency wage model of Salop (1979) developed by Garino and Martin (2007), which separates incumbent and newly hired workers in the production function. Within this theoretical framework, an exogenous increase in the turnover rate can increase profits if firms do not choose wages u...

Indicators of Labour Demand

There are several indicators of labour demand that can be used to assess labour market conditions and as inputs into forecasts of employment growth. These include measures of job vacancies, job advertisements and business surveys of employment intentions. Over the past year, there have been pronounced declines in a number of these indicators and employment growth has been somewhat subdued. This...

DEMAND STRUCTURE AND FIRM BEHAVIOR 1 Not so Demanding : Demand Structure and Firm Behavior

The Structure of Firm-Specific Labour Unions

In this paper we investigate trade union formation. To this end we apply a model with two types of labour where both groups decide on whether they prefer to be represented by either two independent craft-specific (professional) labour unions or by a joint (encompassing) labour union. Applying the asymmetric Nash bargaining solution, we find that it is beneficial for at least one group of labour...

Labour demand and job-to-job movement

The relationship between labour demand and job-to-job movement is investigated, both theoretically and empirically, at the macro level. It concentrates on the role of the employment regime (hiring, do-nothing or ® ring) and the hiring and ® ring costs. The exact upper bounds of the marginal hiring costs of an employed worker are derived, for which job mobility between two ® rms yields a positiv...