Short-Run Demand for Palestinian Labor

The Long-Run Demand for Labor and Adjustment Costs

In practice, it takes time—sometimes several years—for firms to increase their capital stocks (by investing in new plant and equipment) or reduce them (by selling off their capital at auction or not replacing it as it depreciates). Given that capital is such an important element of the production process, it is essential that economists understand the firm’s behavior both during the period when...

The Long-run Demand for Labor in the Banking Industry

On the Short-Run Effects of Labor Market Reforms

This paper evaluates the effects of introducing labor market flexibility into a small open economy characterized by tenure-increasing separation taxes. The model, which is calibrated to Argentinean observations, is subjected to different reforms: 1) the elimination of all separation costs, 2) the introduction of temporary contracts, and 3) the elimination of the separation costs from all new hi...

The Long-Run Demand for Skilled and Unskilled Labor in Colombian Manufacturing Plants

This note estimates the long-run demand for skilled and unskilled labor using panel data for Colombian manufacturing plants. Unobserved heterogeneity and measurement error problems that commonly arise in microdata production estimates are examined. Output measurement errors cause OLS estimators to underestimate the output and wage response of employment demand. Time-difference estimators exagge...

Local Labor Demand and Child Labor

This paper uses micro data from the Brazilian PNAD between 1981 and 2002 to ascertain the role of local labor demand play in shaping work and schooling decisions of children aged 10-15. Using male adult employment by state and year as a proxy for labor demand, we find evidence that contrary to the widespread view that child labor is procyclical among young children (ages 1012) employment (schoo...