Dynamics of Labour and Capital Adjustment - a Comparison of Germany and the Netherlands
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| Format: | Documento de trabajo |
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International Labour Organization
2004
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| _version_ | 1874525036609536004 |
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| author | Michael Polder Sher Verick |
| author_facet | Michael Polder Sher Verick Michael Polder Sher Verick |
| contents | Dynamics of Labour and Capital Adjustment - a Comparison of Germany and the Netherlands Michael Polder Sher Verick In this paper we investigate the dynamic adjustment of labour and capital in German and Dutch firms. The Dutch labour market is characterised by greater flexibility in wages and work arrangements in comparison to Germany. These institutional differences imply that employment dynamics in the two countries should differ, and in particular, labour adjustment in the Netherlands should be more responsive to economic changes. On the other hand, there is unlikely to be such a divergence in capital dynamics as investment conditions are similar. Our results are consistent with this hypothesis. Furthermore, there is no evidence that labour market regulations in the two countries affect the dynamics of capital adjustment. IZA postedContent.workingPaper |
| format | Documento de trabajo |
| id | ilo_995325151702676 |
| institution | Organización Internacional del Trabajo (OIT) |
| publishDate | 2004 |
| publisher | International Labour Organization |
| spellingShingle | Dynamics of Labour and Capital Adjustment - a Comparison of Germany and the Netherlands Michael Polder Sher Verick Dynamics of Labour and Capital Adjustment - a Comparison of Germany and the Netherlands Michael Polder Sher Verick In this paper we investigate the dynamic adjustment of labour and capital in German and Dutch firms. The Dutch labour market is characterised by greater flexibility in wages and work arrangements in comparison to Germany. These institutional differences imply that employment dynamics in the two countries should differ, and in particular, labour adjustment in the Netherlands should be more responsive to economic changes. On the other hand, there is unlikely to be such a divergence in capital dynamics as investment conditions are similar. Our results are consistent with this hypothesis. Furthermore, there is no evidence that labour market regulations in the two countries affect the dynamics of capital adjustment. IZA postedContent.workingPaper |
| title | Dynamics of Labour and Capital Adjustment - a Comparison of Germany and the Netherlands |
| url | https://researchrepository.ilo.org/esploro/outputs/workingPaper/Dynamics-of-Labour-and-Capital-Adjustment/995325151702676 |