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Title: Labor demand, productivity and business cycle: evidence from Portuguese large firms
Authors: Simões, N. N.
Keywords: Labor productivity
Business cycle
Labor demand
Labor mobility
Issue Date: 2004
Publisher: Dinâmia
Series/Report no.: Dinâmia Working Paper
Abstract: What determines the cyclical behaviour of labor productivity? This article considers intra firm and inter firm explanations for the correlation between labor productivity and aggregate shocks. From a set of 2100 Portuguese firms with more than 100 workers, between 1995 and 1999, we found that: (1) aggregate labor productivity was procyclical, although more than half of the firms revealed countercyclical productivity; (2) procyclical intra firm effects were stronger than countercyclical inter firm dynamics; (3) both intra and inter firm theories are important to understand the dynamics of labor productivity; (4) cleansing effects dominated over sullying effects; (5) only a framework integrating several intra firm theories can explain the observed evidence.
Peer reviewed: Sim
Appears in Collections:DINÂMIA'CET-WP - Working papers com arbitragem científica

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