Slow uptick in ICT utilization and labor hoarding
in several European economies, led the Euro Area's labor productivity relative to the U.
Because of labor hoarding
, worker productivity is a poor measure of worker capability at various points in the business cycle.
This prediction also emerges in models that allow for labor hoarding and variable capital utilization rates (Burnside, Eichenbaum, and Rebelo, 1993 and Burnside and Eichenbaum, 1996).
For example, Burnside, Eichenbaum, and Rebelo (1993) and Burnside and Eichenbaum (1996) modify a neoclassical model by allowing for labor hoarding and variable capital utilization.
4) Theory provides at least three explanations for this business cycle "fact": procyclical technology shocks, increasing returns to scale, and labor hoarding
Labor hoarding however cannot be adequately expressed by isoquants.
74] suggests that labor hoarding is probably most often a behavior which reflects the entrepreneur's understanding of long term economic conditions.
Firms that practice a relatively large degree of labor hoarding will naturally have more stable employment, and this model suggests that they would give larger price-cost markup estimates as well.
Do markups indicate market power or labor hoarding combined with sticky prices?
They find that job security provisions and worker bargaining power interact with institutional factors and sectoral shocks to determine allocation, and the extent of labor hoarding
Immediately after a monetary contraction, therefore, inflation remains high while output contracts; meanwhile, labor hours fall less than output because of labor hoarding
As part of his role in the group, Eichenbaum has been working on labor hoarding
over the business cycle.