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

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