Making do with less: working harder during recessions

Lazear, Edward P., Shaw, Kathryn L. and Stanton, Christopher (2014) Making do with less: working harder during recessions. CEP Discussion Papers (CEPDP1321). Centre for Economic Performance, London School of Economics and Political Science, London, UK.

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Abstract

Why did productivity rise during recent recessions? One possibility is that average worker quality increased. A second is that each incumbent worker produced more. The second effect is termed “making do with less.” Using data from 2006 to 2010 on individual worker productivity from a large firm, these effects can be measured and separated. For this firm, most of the gain in productivity during the recession was a result of increased effort. Additionally, the increase in effort is correlated with the increase in the local unemployment rate, presumably reflecting the costs of losing a job.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk/_new/publications/series.asp?...
Additional Information:	© 2014 The Authors
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HC Economic History and Conditions
JEL classification:	D - Microeconomics > D2 - Production and Organizations > D20 - General E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations; Cycles L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L22 - Firm Organization and Market Structure: Markets vs. Hierarchies; Vertical Integration; Conglomerates; Subsidiaries M - Business Administration and Business Economics; Marketing; Accounting > M5 - Personnel Economics > M50 - General
Sets:	Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited:	06 Jan 2015 15:27
Last Modified:	02 Dec 2020 00:11
Funders:	Economic and Social Research Council
URI:	http://eprints.lse.ac.uk/id/eprint/60617

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