Abstract

  
 

References (59)



 
 

Citations (15)



 


 



Factor Adjustments after Deregulation: Panel Evidence from Colombian Plants


Marcela Eslava


University of the Andes (CEDE)

John Haltiwanger


University of Maryland - Department of Economics; National Bureau of Economic Research (NBER); Institute for the Study of Labor (IZA)

Adriana D. Kugler


Georgetown University - Public Policy Institute (GPPI); Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA); National Bureau of Economic Research (NBER)

Maurice Kugler


Wilfrid Laurier University - School of Business & Economics; Harvard University - Center for International Development (CID); Centre for International Governance Innovation (CIGI); National Bureau of Economic Research (NBER)
October 2005

NBER Working Paper No. w11656

Abstract:     
We analyze employment and capital adjustments using plant data from the Colombian Annual Manufacturing Survey. We estimate adjustment functions for capital and labor as a non-linear function of the gaps between desired and actual factor levels, allowing for interdependence in adjustments of the two factors. In addition to non-linear employment and capital adjustments in response to market fundamentals, we find that capital shortages reduce hiring and labor surpluses reduce capital shedding. We also find that after factor market deregulation in Colombia in 1991, factor adjustment hazards increased on the job destruction and capital formation margins. Finally, we find that completely eliminating frictions in factor adjustment would yield a substantial increase in aggregate productivity through improved allocative efficiency. Yet, the actual impact of the Colombian deregulation on aggregate productivity through factor adjustment was modest.

Number of Pages in PDF File: 44

working papers series


Download This Paper

Date posted: December 4, 2005  

Suggested Citation

Eslava, Marcela, Haltiwanger, John C., Kugler, Adriana D. and Kugler, Maurice, Factor Adjustments after Deregulation: Panel Evidence from Colombian Plants (October 2005). NBER Working Paper No. w11656. Available at SSRN: http://ssrn.com/abstract=819817

Contact Information

Marcela Eslava (Contact Author)
University of the Andes (CEDE) ( email )
Carrera 1a No. 18A-10
Santafe de Bogota, AA4976
Colombia

John C. Haltiwanger
University of Maryland - Department of Economics ( email )
College Park, MD 20742
United States
301-405-3504 (Phone)
301-405-3542 (Fax)
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Institute for the Study of Labor (IZA) ( email )
P.O. Box 7240
Bonn, D-53072
Germany
Adriana Debora Kugler
Georgetown University - Public Policy Institute (GPPI) ( email )
3600 N Street, NW Suite 200
Washington, DC 20057
United States
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Maurice Kugler
Wilfrid Laurier University - School of Business & Economics ( email )
Waterloo, Ontario N2L 3C5
CANADA
Harvard University - Center for International Development (CID) ( email )
One Eliot Street Building
79 JFK Street
Cambridge, MA 02138
United States
Centre for International Governance Innovation (CIGI) ( email )
57 Erb Street West
Waterloo, Ontario N2L 6C2
Canada
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Feedback to SSRN (Beta)


Paper statistics
Abstract Views: 388
Downloads: 23
References:  59
Citations:  15

© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright
This page was processed by apollo8 in 0.453 seconds