Uncertainty shocks are found to adversely affect labor market outcomes. Most studies attribute labor adjustments costs for the propagation of macroeconomic uncertainty to the labor market. Given that large establishments in Germany face higher labor adjustments cost, they should be affected more...

Uncertainty shocks are found to adversely affect labor market outcomes. Most studies attribute labor adjustments costs for the propagation of macroeconomic uncertainty to the labor market. Given that large establishments in Germany face higher labor adjustments cost, they should be affected more...

A well-supported conclusion of previous research is that displacement entails large and persistent costs for workers. It therefore seems reasonable to expect workers to try to anticipate and respond to the risk of displacement. Using 1983-93 data from the Panel Survey of Income Dynamics and the...