of firm investment and demand for labor with imperfect capital markets, represented as a constraint on dividends, and … increase in firm investment, which does not happen if only labor market rigidities are removed. …

specific characteristics of their technology and economic activity. Interaction effects between investment and labour demands …

We survey recent microeconometric research on investment and employment that has used panel data on individual firms or … theory of the demand for capital and labour, on which most of the econometric models of investment and employment that we … topics that have been the focus of recent microeconometric research on investment and employment. In particular, we review …

on net or gross changes in employment. We estimate a structural model of dynamic labour demand where the firm faces … changes in employment from a panel of establishments. The main component of adjustment costs in our panel is quadratic … adjustment costs to gross changes in employment. We also estimate that adjustment costs have a large economic cost, roughly …

period and firms react by choosing employment, and (ii) for the commitment equilibria where the union can precommit to the … entire (infinite) sequence of wages. We conclude that the speed of adjustment of employment, that is higher in the … employment and wages only in the no-commitment case, i.e., the higher the relevance of adjustment costs the higher the wage and …