Adhvaryu, Achyuta; Chari, A. V.; Sharma, Siddharth - In: The Review of Economics and Statistics 95 (2013) 3, pp. 725-740
A key prediction of dynamic labor demand models is that firing restrictions attenuate firms' employment responses to … rainfall fluctuations, through their effects on agricultural productivity, generate variation in local demand within districts … over time. Consistent with the theory, we find that industrial employment is more sensitive to shocks where labor …