search query: @indexterm LAY-OFFS / total: 128
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| Author: | Lichtenberg, F. |
| Title: | Labour market institutions, liquidity constraints, and macroeconomic stability |
| Journal: | Journal of Economic Behavior and Organization
1995 : SEP, VOL. 28:1, p. 145-154 |
| Index terms: | EMPLOYMENT LAY-OFFS BUSINESS CYCLES |
| Language: | eng |
| Abstract: | The sensitivity of employment and real wages - hence aggregate labour income - to short-run fluctuations in output varies across countries. The author develops a simple theoretical model to show that, if workers, but not capitalists, are liquidity constrained, the sensitivity of an economy to exogenous expenditure shocks is inversely related to the extent to which capitalists, rather than workers, bear fluctuations in income. The author performs an econometric test of this proposition using cross-sectional, country-level data. |
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