Exchange Rate Uncertainty and Labour Market Adjustment under Fixed and Flexible Exchange Rates
The standard literature on working time has modelled the decisions of firms in a deterministic framework in which firms can choose between employment and overtime (given mandated standard hours). Contrary to this approach, we follow the real options approach, which allows us to investigate the value of a firm of waiting to adjust labour when the firm´s revenues in domestic currency are stochastic and adjustment costs are sunk. The simulations reject the null hypothesis that all exchange rate regimes obey common emploment adjustment thresholds.
Real Option Theory, Uncertainty, Working Time, Employment, Labour Demand, Exchange Rates
In order to set up a list of libraries that you have access to,
you must first login
or sign up.
Then set up a personal list of libraries from your profile page by
clicking on your user name at the top right of any screen.