Employment and labour hoarding: a production function approach

Author:

Vella Melchior

Abstract

PurposeThis paper aims to test the hypothesis that the effect of production slowdown on labour demand can be muted by labour hoarding.Design/methodology/approachThis study adopts a production function approach, using data from Malta, a small state in the EU.FindingsThe results confirm the hypothesis and indicate that firms are normally prepared to employ and dismiss more workers in the long run than in the short run.Practical implicationsThis finding has important implications for developed countries, including that labour hoarding can be of certain relevance in times of economic slowdown as shocks are absorbed by internal flexibility.Originality/valueThe results of this study add on to the existing literature in two ways. First, this study compares two industries –manufacturing and financial services– for which the former sector received support to hoard labour after the financial turmoil of 2008. Consequently, the dominance of labour hoarding in manufacturing relative to financial services is uncovered and the effect of hoarding practices on labour demand is estimated. Second, Malta is an interesting case because it is one of the smallest economies in the world and faces a high degree of vulnerability because of constraints associated with small size and insularity. As a result, firms adopt policy-induced measures to minimise adjustment costs.

Publisher

Emerald

Subject

General Economics, Econometrics and Finance

Reference59 articles.

1. Linear adjustment costs and seasonal labor demand: evidence from retail trade firms;Quarterly Journal of Economics,1993

2. Okun’s law, in Malta lessons learnt from a sectoral perspective,2014

3. EU labour market behaviour during the great recession,2010

Cited by 10 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

1. Effects of innovation and markups on employment and labour share in OECD industries;Structural Change and Economic Dynamics;2024-12

2. Innovation, market power and the labour share: Evidence from OECD industries;Technological Forecasting and Social Change;2024-06

3. Relevancy and drivers of trade openness: a study of GIPSI countries;Journal of Economic and Administrative Sciences;2023-09-18

4. Theoretical Concept of Labor Underutilization - How to Optimize Labor Demand?;Forum for Social Economics;2023-05-15

5. Analysing the linkage between total factor productivity and tourism growth in Latin American countries;Journal of Economics, Finance and Administrative Science;2022-11-02

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3