TY  - RPRT
        AU  - Nilsen, Øivind Anti
AU  - Salvanes, Kjell G.
AU  - Schiantarelli, Fabio
        TI  - Employment Changes, the Structure of Adjustment Costs, and Plant Size
        PY  - 2003/Nov/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 920
        UR  - https://www.iza.org/publications/dp920
        AB  - In this paper we analyze the pattern of employment adjustment using a rich panel of
Norwegian plants. The data suggest that the frequency of episodes of zero net employment
changes is inversely related to plant size. We develop and estimate a simple “q” model of
labor demand, allowing for the presence of fixed, linear and convex components of
adjustment costs. The econometric evidence supports the existence of purely fixed
components, unrelated to plant size. As a result, the range of inaction is wider for smaller
plants. The quadratic components of costs are also important. Finally, in most specifications
both fixed and convex costs are higher for employment contractions.
        KW  - size
KW  - adjustment costs
KW  - employment demand
        ER  -