Labor Unemployment Risk and Sticky Cost Behavior

Abstract

This paper presents large-sample evidence that firms consider labor unemployment risk when setting their resource adjustment policies. Prior studies find that costs rise more in response to sales increases than they fall in response to sales decreases. Anderson, Banker, and Janakiraman (2003) term this phenomenon “cost stickiness” and attribute it to… (More)

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Cite this paper

@inproceedings{Wang2014LaborUR, title={Labor Unemployment Risk and Sticky Cost Behavior}, author={Ke Wang and Oswald}, year={2014} }