Abstract
This paper analyzes wage elasticities using a panel dataset of 2800 large Belgian firms over the period 1987-1994. We explore various functional forms and find that the short-run wage elasticity varies between -0.37 and -0.65, while the long-run elasticity is robustly estimated to be larger than 1 in absolute value. These results are striking for they are much higher than those reported in previous studies using macroeconomic time-series data. This suggests that labour costs are more important in determining the demand for labour than initially was believed.
| Original language | English |
|---|---|
| Pages (from-to) | 229-241 |
| Number of pages | 13 |
| Journal | De Economist |
| Volume | 145 |
| Issue number | 2 |
| Publication status | Published - 1997 |
| Externally published | Yes |
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Keywords
- Jobs
- Labour demand
- Wage elasticities
- Wages
ASJC Scopus subject areas
- Economics and Econometrics
- Earth and Planetary Sciences(all)
- Environmental Science(all)
Cite this
How elastic is the demand for labour in Belgian enterprises? Results from firm level accounts data, 1987-1994. / Konings, Jozef; Roodhooft, Filip.
In: De Economist, Vol. 145, No. 2, 1997, p. 229-241.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - How elastic is the demand for labour in Belgian enterprises? Results from firm level accounts data, 1987-1994
AU - Konings, Jozef
AU - Roodhooft, Filip
PY - 1997
Y1 - 1997
N2 - This paper analyzes wage elasticities using a panel dataset of 2800 large Belgian firms over the period 1987-1994. We explore various functional forms and find that the short-run wage elasticity varies between -0.37 and -0.65, while the long-run elasticity is robustly estimated to be larger than 1 in absolute value. These results are striking for they are much higher than those reported in previous studies using macroeconomic time-series data. This suggests that labour costs are more important in determining the demand for labour than initially was believed.
AB - This paper analyzes wage elasticities using a panel dataset of 2800 large Belgian firms over the period 1987-1994. We explore various functional forms and find that the short-run wage elasticity varies between -0.37 and -0.65, while the long-run elasticity is robustly estimated to be larger than 1 in absolute value. These results are striking for they are much higher than those reported in previous studies using macroeconomic time-series data. This suggests that labour costs are more important in determining the demand for labour than initially was believed.
KW - Jobs
KW - Labour demand
KW - Wage elasticities
KW - Wages
UR - http://www.scopus.com/inward/record.url?scp=0031457655&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0031457655&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:0031457655
VL - 145
SP - 229
EP - 241
JO - De Economist
JF - De Economist
SN - 0013-063X
IS - 2
ER -