TY  - JOUR
AU  - Bertola,Giuseppe
TI  - Labor Turnover Costs and Average Labor Demand
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3866
PY  - 1991
Y2  - October 1991
UR  - http://www.nber.org/papers/w3866
L1  - http://www.nber.org/papers/w3866.pdf
N1  - Author contact info:
Giuseppe Bertola
Dipartimento di Economia, Università di Torino
Via Po 53
I-10124 Torino
Italy
E-Mail: giuseppe.bertola@unito.it
AB  - This paper studies simple partial equilibrium models of dynamic labor demand, under certainty. Labor turnover costs may or may not decrease the firm's average labor demand, depending on the form of the revenue function, on the rates of discount and of labor attrition, and on the relative size of hiring and firing costs. With strictly positive discount and labor attrition rates, the firm's optimal policy is partially myopic, and firing costs may well increase average employment even when hiring costs reduce it.
ER  -