Employment Adjustment in Portugal: Evidence from Aggregate and Firm Data

Addison, John T.; Teixeira, Paulino

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Employment Adjustment in Portugal: Evidence from Aggregate and Firm Data

27 Pages Posted: 5 Nov 2001

See all articles by John T. Addison

John T. Addison

University of South Carolina - Moore School of Business - Department of Economics; IZA Institute of Labor Economics

Paulino Teixeira

Universidade de Coimbra - Faculdade de Economia; Center for European Economic Research (ZEW)

Date Written: November 2001

Abstract

This paper examines the pattern of employment adjustment in Portugal. First, the issue is addressed using a long time series of aggregate data. Although the employment data show persistence, there is nonetheless a fairly rapid rate of employment adjustment. Second, a much shorter time series of firm data is used to check the persistence detected at aggregate level, and also to examine the contribution of atypical work over the cycle. Consistent with the aggregate evidence, and despite stronger employment inertia, there is no suggestion in the firm panel that labor demand is cyclically unstable.

Keywords: Employment Adjustment, Employment Protection, Labor Demand, Error-Correction Model, Panel Estimation

JEL Classification: C22, C23, J23, J32

Suggested Citation: Suggested Citation

Addison, John T. and Teixeira, Paulino, Employment Adjustment in Portugal: Evidence from Aggregate and Firm Data (November 2001). Available at SSRN: https://ssrn.com/abstract=289106