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La sensibilité de l'emploi au coût du travail. Une exploration à partir de données de panel

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  • François Legendre
  • Patricia Le Maitre

Abstract

In this study, we present new evaluations of the sensitivity of labour demand to cost, based on a sample of nearly 800 French industrial firms tracked from 1980 to 1987. We explore a model of imperfect competition aimed at facilitating determination of the favourable impact of lower labour costs on employment. This is mainly achieved in two ways. The first is connected with substitution: a decrease in labour cost slows down the rate of capital/labour substitution. The second is connected with competitiveness because a decrease in labour costs is one way to lower unit production costs and so to improve competitiveness. The purpose of our econometrics experiment is to quantify the magnitude of these two effects. On the one hand, we show that capital and labour are two production factors that may be hard to substitute inside firms. This way, a 1% decrease in labour cost can boost employment on average by 0,1%. On the other hand, we find that the predominant effect would be on competitiveness. This way, a 1% decrease in labour cost can increase employment on average by 0,7%. However, this last effect is not certain and may be connected partly with a ?composition bias?.

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  • François Legendre & Patricia Le Maitre, 2001. "La sensibilité de l'emploi au coût du travail. Une exploration à partir de données de panel," Economie & Prévision, La Documentation Française, vol. 0(4), pages 1-11.
    • Handle: RePEc:cai:ecoldc:ecop_150_0001
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    1. repec:adr:anecst:y:1996:i:41-42:p:04 is not listed on IDEAS
    2. Auerbach, Alan J, 1983. "Taxation, Corporate Financial Policy and the Cost of Capital," Journal of Economic Literature, American Economic Association, vol. 21(3), pages 905-940, September.
    3. Patrick Sevestre & Brigitte Dormont, 1986. "Modèles dynamiques de demande de travail : spécification et estimation sur données de panel," Revue Économique, Programme National Persée, vol. 37(3), pages 455-488.
    4. Patrick Artus & Claude Bismut, 1980. "Substitution et coût des facteurs : un lien existe-t-il ?," Économie et Statistique, Programme National Persée, vol. 127(1), pages 101-114.
    5. repec:adr:anecst:y:1999:i:55-56:p:03 is not listed on IDEAS
    6. François Legendre & Patricia Le Maitre, 1997. "Le lien emploi-coût relatif des facteurs de production : quelques résultats obtenus à partir de données de panel," Économie et Statistique, Programme National Persée, vol. 301(1), pages 111-127.
    7. Brigitte Dormont, 1997. "L'influence du coût salarial sur la demande de travail," Économie et Statistique, Programme National Persée, vol. 301(1), pages 95-109.
    8. Daniel S. Hamermesh, 1993. "Labor Demand and the Source of Adjustment Costs," NBER Working Papers 4394, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Mathieu Bunel & Yannick L'Horty, 2011. "Les effets des aides publiques aux Hôtels Cafés Restaurants et leurs interactions," Working Papers halshs-00658460, HAL.
    2. François Legendre, 1999. "Qu'a-t-on appris sur le lien salaire/ emploi grâce à l'économétrie ?," Cahiers d'Économie Politique, Programme National Persée, vol. 34(1), pages 221-255.
    3. Mathieu Bunel & Yannick L'Horty, 2011. "Les effets des aides publiques aux Hôtels Cafés Restaurants et leurs interactions : Une évaluation sur micro-données d'entreprises," Working Papers halshs-00744905, HAL.

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