TY  - JOUR
AU  - Hamermesh,Daniel S.
TI  - A Genral Model of Dynamic Labor Demand
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3356
PY  - 1990
Y2  - May 1990
UR  - http://www.nber.org/papers/w3356
L1  - http://www.nber.org/papers/w3356.pdf
N1  - Author contact info:
Daniel S. Hamermesh
Department of Economics
University of Texas
Austin, TX 78712-1173
Tel: 512/475-8526
Fax: 512/471-3510
E-Mail: hamermes@eco.utexas.edu
AB  - This study derives and estimates a dynamic model of factor demand that includes both fixed and quadratic variable costs of adjustment. Using quarterly data on the employment of mechanics at seven airlines, it finds that both types of adjustment costs characterize the dynamic constraints facing employers. Using monthly data covering production-worker employment in seven manufacturing plants, it shows that only fixed costs are important. The apparent diversity of the underlying costs of adjustment means it is difficult to draw useful inferences from macroeconometric estimates. It suggests the importance of examining broader arrays of microeconomic time series describing labor demand.
ER  -