We consider a dynamic model in which firms decide whether or not to vary labor in the presence of fixed costs. By exploiting the first-order condition for optimality, we derive a semireduced form in which firms' intertemporal employment is defined by a standard marginal productivity condition...

New technologies can shape the production process by affecting the way in which inputs are embedded in the organization, their quality, and their use. Using an original employer-employee dataset that merges firm-level data on digital technology adoption and other characteristics of production...