Seeking for Labor Demand Heterogeneity
AbstractThe aim of this paper is to examine whether the estimation of labor demand can be affected by individual behavior heterogeneity. We shall consider an error-components model with variable-coefficients, where the coefficients are random and vary accross firms according to the values of time-constant explanatory variables and to a random firm-specific effect. The specification of labor demand which stems from the variable coefficients hypothesis is estimated by the generalized method of moments on a panel of 810 French manufacturing firms. Heterogeneities appear to be strongly significant. When the share of skilled workers is higher, the ajustment speed is lower and the influence of wages on labor demand decreases (in absolute value) as well as that of sector demand shocks. Moreover, a higher market-share leads to a smaller adjustment speed and to an increased influence of wages and industry demand on employment. Our estimates reveal strongly significant heterogeneities in labor demand behavior. However, the study of aggregation biases leads to the conclusion that they are very small. In fact our individual coefficients are uncorrelated with the explanatory variables, and this is a sufficient condition for the absence of aggregation biases.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by ENSAE in its journal Annals of Economics and Statistics.
Volume (Year): (1996)
Issue (Month): 41-42 ()
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Malinvaud, Edmond, 1997. "L’économétrie dans l’élaboration théorique et l’étude des politiques," L'Actualité Economique, Société Canadienne de Science Economique, Société Canadienne de Science Economique, vol. 73(1), pages 11-25, mars-juin.
- Benoît Mahy, 2005. "Flexibilité des contrats et demande de travail en Belgique," Reflets et perspectives de la vie économique, De Boeck Université, De Boeck Université, vol. 0(2), pages 25-35.
- François Legendre, 1999. "Qu'a-t-on appris sur le lien salaire/ emploi grâce à l'économétrie ?," Cahiers d'Économie Politique, Programme National Persée, Programme National Persée, vol. 34(1), pages 221-255.
- Patricia Le Maitre & François Legendre, 2001. "La sensibilité de l'emploi au coût du travail. Une exploration à partir de données de panel," Économie et Prévision, Programme National Persée, Programme National Persée, vol. 150(4), pages 1-11.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Robert Gary-Bobo).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.