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Employment, Labour Utilization and Procyclical Labour Productivity

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  • Konig, Heinz
  • Pohlmeier, Winfried

Abstract

The paper provides a theoretical and empirical framework to analyze the effects of change in various labor-cost parameters on employment and labor utilization. By accounting for overtime work, a nonlinear cost scheme is obtained that can serve as an explanation of procyclic al movements in labor productivity. A generalized Leontief system, based on an onlinear labor-cost scheme, is estimated for employment, average hours worked, and capital input. The empirical evidence is consistent with the stylized fact of procyclical labor productivity. A reduction of standard hours leads to a loss in employment. Copyright 1988 by WWZ and Helbing & Lichtenhahn Verlag AG

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Kyklos.

Volume (Year): 41 (1988)
Issue (Month): 4 ()
Pages: 551-72

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Handle: RePEc:bla:kyklos:v:41:y:1988:i:4:p:551-72

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0023-5962

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Cited by:
  1. Eric Heyer & Florian Pelgrin & Arnaud Sylvain, 2004. "Translog ou Cobb-Douglas? Le rôle des durées d'utilisation des facteurs," Working Papers 04-19, Bank of Canada.
  2. Felix Fitzroy & Michael Funke, 1993. "Real Wages, Investment and Employment - New Evidence From West German Sectoral Data," CRIEFF Discussion Papers 9305, Centre for Research into Industry, Enterprise, Finance and the Firm.
  3. Axel Börsch-Supan, 2002. "Reduction of Working Time: Does it Decrease Unemployment?," MEA discussion paper series 02003, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
  4. Bauer, Thomas & Zimmermann, Klaus F, 1999. "Overtime Work and Overtime Compensation in Germany," Scottish Journal of Political Economy, Scottish Economic Society, vol. 46(4), pages 419-36, September.
  5. Licht, Georg & Schnell, Wolfgang & Stahl, Harald, 1996. "Ergebnisse der Innovationserhebung 1995," ZEW Dokumentationen 96-05, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  6. Thomas Bauer & Regina Riphahn, 2002. "Employment effects of payroll taxes - an empirical test for Germany," Applied Economics, Taylor and Francis Journals, vol. 34(7), pages 865-876.
  7. Barth, Alfons & Zika, Gerd, 1996. "Volkswirtschaftliche Effekte einer Arbeitszeitverkürzung : eine Simulationsstudie für Westdeutschland mit dem makroökonometrischen Modell SYSIFO (Economic effects of a reduction in working hours : ," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 29(2), pages 179-202.
  8. Wolf, Elke, 2000. "Loosening hours constraints on the supply of labor: what if Germans had a Dutch labor market?," ZEW Discussion Papers 00-54, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  9. Kaiser, Ulrich & Pfeiffer, Friedhelm, 2000. "Collective wage agreements and the adjustment of workers and hours in German service firms," ZEW Discussion Papers 00-33, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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