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The Elasticity of Demand for Labour in Australia

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Author Info
Lewis, Philip E T
MacDonald, Garry

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Abstract

The elasticity of demand for labor at the aggregate level is an important parameter for macroeconomic analysis. In particular, policy issues concerning the impact of wage falls on employment and unemployment hinge on the size of this parameter. It is argued in the present paper that previous work on the elasticity of demand for labor in Australia has been unsatisfactory in a number of ways. A new set of estimates is provided that are derived using a better methodology than before. Copyright 2002 by The Economic Society of Australia.

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Publisher Info
Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 78 (2002)
Issue (Month): 240 (March)
Pages: 18-30
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Handle: RePEc:bla:ecorec:v:78:y:2002:i:240:p:18-30

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  1. Lei Lei Song & John Freebairn, 2004. "ow Big Was the Effect of Budget Consolidation on the Australian Economy in the 1990s?," Melbourne Institute Working Paper Series wp2004n30, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
    Other versions:
  2. Robert Dixon & John Freebairn & G C Lim, 2004. "An Employment Equation For Australia: 1966-2001," Department of Economics - Working Papers Series 892, The University of Melbourne. [Downloadable!]
  3. Robert Dixon & David Shepherd, 2006. "The Cyclical Dynamics and Volatility of Australian Output and Employment," Department of Economics - Working Papers Series 968, The University of Melbourne. [Downloadable!]
    Other versions:
  4. Marika Karanassou & Hector Sala, 2008. "Labour Market Dynamics in Australia: What Drives Unemployment?," Discussion Papers 2008-26, School of Economics, The University of New South Wales. [Downloadable!]
    Other versions:
  5. Robert Dixon & John Freebairn, 2007. "Hours of Work: A Demand Perspective," Department of Economics - Working Papers Series 1022, The University of Melbourne. [Downloadable!]
  6. Oslington, Paul & Freyens, Ben, 2005. "Dismissal Costs and their Impact on Employment: Evidence from Australian Small and Medium Enterprises," MPRA Paper 961, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  7. Mark Bahnisch & John Quiggin, 2006. "IR Reform: Choice and Compulsion," Australian Public Policy Program Working Papers WP2P06, Risk and Sustainable Management Group, University of Queensland. [Downloadable!]
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