Dynamics of Labour and Capital Adjustment : A Comparison of Germany and the Netherlands

Arbeitspapier

In this paper we investigate the dynamic adjustment of labour and capital in German and Dutch firms. The Dutch labour market is characterised by greater flexibility in wages and work arrangements in comparison to Germany. These institutional differences imply that employment dynamics in the two countries should differ, and in particular, labour adjustment in the Netherlands should be more responsive to economic changes. On the other hand, there is unlikely to be such a divergence in capital dynamics as investment conditions are similar. Our results are consistent with this hypothesis. Furthermore, there is no evidence that labour market regulations in the two countries affect the dynamics of capital adjustment.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 1212

Classification and Topics

• Classification: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Investment; Capital; Intangible Capital; Capacity ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
• Subject: investment ; labour demand ; interrelation ; panel data ; GMM ; Investition ; Arbeitsnachfrage ; Arbeitsmarktflexibilisierung ; Wirtschaftliche Anpassung ; Vergleich ; Deutschland ; Niederlande

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Polder, Michael ; Verick, Sher
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/20465
• Last update: 10.03.2025, 11:45 AM CET