This important book presents in one volume the most important articles and papers on three key issues in modern labor economics: the dynamics of labour demand, the related adjustment costs, and the effects of employment security policies.The poor employment performance of many of the industrialized countries in the 1970s and '80s has led to a dramatic growth of interest in the dynamics of labor demand and an outpouring of related policy initiatives in the European Community. In the United States, the erosion of the employment-at-will doctrine promises to arouse a similar growth of interest. This comprehensive reference collection brings together the seminal papers in this field, showing how the theory of labour demand dynamics and empirical analysis can be linked to the study of job security policies and their consequences. Dynamic Labor Demand and Adjustment Costs will be an invaluable resource for students of microeconomics, labour economics and macroeconomics, as well as policy analysts concerned with job security and employment.