Many firms adjust employment in a "lumpy" manner -- infrequently and in large bursts. In this paper, I show that lumpy … firm's profitability from its employment decisions. I show that the resulting signaling model has pooling equilibria in … becomes too costly; at that point the firm drastically reduces employment …

rates from employment, and has shown little improvement over the last 40 years. Furthermore, even among those who work … the racial gaps in this involuntary part-time employment are large even after controlling for observable characteristics …