Accession Number : AD0638498

Title :   DEFENSE CONTRACTORS AND LABOR ADJUSTMENT.

Corporate Author : RAND CORP SANTA MONICA CALIF

Personal Author(s) : Arditti,Fred D. ; Peck,Merton J.

Report Date : SEP 1966

Pagination or Media Count : 23

Abstract : The investigation examines the labor elasticity of defense contractors, that is the variation in labor inputs associated with sales variations. The hypothesis is that defense contractors adjust their labor supply more sluggishly than enterprises in other manufacturing industries. Such a hypothesis is not particularly novel; a common observation is that project cancellation leads to an overall employee reduction significantly less than the numbers involved in the project. Section II of this paper uses a simple profit maximization model to demonstrate why this occurs.. Section III quantifies and tests the model. Section IV considers the implications of results.

Descriptors :   (*LABOR, PERSONNEL MANAGEMENT), (*DEFENSE SYSTEMS, LABOR), COSTS, INDUSTRIES, COMMERCE, INDUSTRIAL PRODUCTION

Subject Categories : Economics and Cost Analysis
      Personnel Management and Labor Relations

Distribution Statement : APPROVED FOR PUBLIC RELEASE