TY  - CHAP
AB  - This paper analyzes labor market responses to productivity shocks when firms set employment criteria on the basis of the likelihood of hiring high or low productivity workers. In response to a positive productivity shock, firms do not raise the criterion as much as the shock, increasing the proportion of low productivity workers among the employed. The observed average productivity may respond negligibly even if employment changes substantially. Interest rate fluctuations can yield an opposite relation between productivity and employment, explaining the weak empirical relationship.
VL  - 26
SN  - 978-1-84950-473-7, 978-0-7623-1390-7/0147-9121
DO  - 10.1016/S0147-9121(06)26013-8
UR  - https://doi.org/10.1016/S0147-9121(06)26013-8
AU  - Srinivas Sumati
AU  - Sattinger Michael
ED  - Solomon W. Polachek
ED  - Olivier Bargain
PY  - 2007
Y1  - 2007/01/01
TI  - The Employment–Productivity Relationship with Employment Criteria
T2  - Aspects of Worker Well-Being
T3  - Research in Labor Economics
PB  - Emerald Group Publishing Limited
SP  - 447
EP  - 466
Y2  - 2024/04/23
ER  -