How elastic is the demand for labour in Belgian enterprises? Results from firm level accounts data, 1987-1994

Jozef Konings, Filip Roodhooft

Research output: Contribution to journalArticle

10 Citations (Scopus)

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 languageEnglish
Pages (from-to)229-241
Number of pages13
JournalDe Economist
Volume145
Issue number2
Publication statusPublished - 1997
Externally publishedYes

Fingerprint

elasticity
labor
wage
macroeconomics
time series
cost
demand
firm
Demand for labor
Wage elasticity
Time series data
Elasticity
Labour costs
Large firms
Functional form
Macroeconomics
Short-run

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 journalArticle

Konings, Jozef ; Roodhooft, Filip. / How elastic is the demand for labour in Belgian enterprises? Results from firm level accounts data, 1987-1994. In: De Economist. 1997 ; Vol. 145, No. 2. pp. 229-241.
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