Research objectives and content
The objective of the research is to try to explain why firms hold excess labour during contractions, that is, to explain labour hoarding. Why, in a downturn, some workers are paid to do nothing (or every worker works less intensely than normal) as is empirically validated by Fay and Medoff (1985)*? There is now a revival of interest on this topic, particularly in the real business cycle theories. However, the explanations that are given to this phenomenon are not entirely satisfactory. The project that I plan to carry out at Aarhus University is to explain labour hoarding, using labour market rigidities and different hypotheses on price rigidities. * Fay J.A. and J.L. Medoff (1985), "Labor and output over the business cycle: Some direct evidence", American Economic Review, vol. 75, pp. 638-655.
Training content (objective, benefit and expected impact)
The objective of a stay at Aarhus University is to meet people that are specialists on the topics of price rigidities and on labour market rigidities. I hope it will be possible to write several articles in collaboration with scientists of the host Institution.
These articles would be submitted to international journals; hoping that they could help to a better theoretical understanding of labour hoarding.
Links with industry / industrial relevance (22)