Carlsson, Mikael; Eriksson, Stefan; Gottfries, Nils - 2011 - rev.
How important is imperfect competition in the product market for employment dynamics? To investigate this, we formulate … a theoretical model of employment adjustment with imperfect competition in the product market, search frictions, and … convex adjustment costs. From this model, we derive a structural equation for employment that we estimate on firm-level data …