IDEAS home Printed from https://ideas.repec.org/a/eee/ecolet/v19y1985i2p193-197.html
   My bibliography  Save this article

Is there chronic excess supply of labor? : Designing a statistical test

Author

Listed:
  • Quandt, Richard E.
  • Rosen, Harvey S.

Abstract

In this paper we present and implement a statistical test of the hypothesis that the labor market has chronic excess supply. The procedure is to estimate a disequilibrium labor market model, and construct a test statistic based on the unconditional probability that there is excess supply each period. We find that the data reject the hypothesis of chronic excess supply. Hence, one cannot assume that all observations lie on the demand curve.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Quandt, Richard E. & Rosen, Harvey S., 1985. "Is there chronic excess supply of labor? : Designing a statistical test," Economics Letters, Elsevier, vol. 19(2), pages 193-197.
    • Handle: RePEc:eee:ecolet:v:19:y:1985:i:2:p:193-197
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/0165-1765(85)90019-9
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Rosen, Harvey S & Quandt, Richard E, 1978. "Estimation of a Disequilibrium Aggregate Labor Market," The Review of Economics and Statistics, MIT Press, vol. 60(3), pages 371-379, August.
    2. Eaton, Jonathan & Quandt, Richard E, 1983. "A Model of Rationing and Labour Supply: Theory and Estimation," Economica, London School of Economics and Political Science, vol. 50(199), pages 221-233, August.
    3. Sarantis, Nicholas C., 1981. "Employment, labor supply and real wages in market disequilibrium," Journal of Macroeconomics, Elsevier, vol. 3(3), pages 335-354.
    4. Romer, David, 1981. "Rosen and Quandt's Disequilibrium Model of the Labor Market: A Revision," The Review of Economics and Statistics, MIT Press, vol. 63(1), pages 145-146, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Philip E.T. Lewis & Michael G. Kirby, 1987. "The Impact of Incomes Policy on Aggregate Wage Determination in Australia," The Economic Record, The Economic Society of Australia, vol. 63(2), pages 156-161, June.
    2. Tarkka, Juha & Willman, Alpo & Rasi, Chris-Marie, 1989. "Labour supply, wages and prices in the BOF4 quarterly model of the Finnish economy," Research Discussion Papers 6/1989, Bank of Finland.
    3. David Neumark, 2019. "The Econometrics and Economics of the Employment Effects of Minimum Wages: Getting from Known Unknowns to Known Knowns," German Economic Review, Verein für Socialpolitik, vol. 20(3), pages 293-329, August.
    4. Bernanke, Ben S, 1986. "Employment, Hours, and Earnings in the Depression: An Analysis of EightManufacturing Industries," American Economic Review, American Economic Association, vol. 76(1), pages 82-109, March.
    5. Holt, Matthew T., 1991. "A Multi-Market Bounded Prices Model Under Rational Expectations: The Case of Corn and Soybeans in the U.S," 1991 Annual Meeting, August 4-7, Manhattan, Kansas 271199, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Antoine Mandel & Vipin Veetil, 2020. "The Economic Cost of COVID Lockdowns: An Out-of-Equilibrium Analysis," Economics of Disasters and Climate Change, Springer, vol. 4(3), pages 431-451, October.
    7. Robert Leroy, 1981. "Le marché du travail : une approche hors paradigmes," Revue Économique, Programme National Persée, vol. 32(2), pages 237-270.
    8. Gerald Manthalu, 2019. "User fee exemption and maternal health care utilisation at mission health facilities in Malawi: An application of disequilibrium theory of demand and supply," Health Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 461-474, April.
    9. Bierings, H. & Sneek, K., 1989. "Pseudo maximum likelihood techniques in a simple rationing model of the Dutch labour market," Serie Research Memoranda 0063, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    10. Hamermesh, Daniel S., 1987. "The demand for labor in the long run," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 8, pages 429-471, Elsevier.
    11. David Neumark, 2017. "The Employment Effects of Minimum Wages: Some Questions We Need to Answer," NBER Working Papers 23584, National Bureau of Economic Research, Inc.
    12. John C. Ham & Kevin T. Reilly, 2002. "Testing Intertemporal Substitution, Implicit Contracts, and Hours Restriction Models of the Labor Market Using Micro Data," American Economic Review, American Economic Association, vol. 92(4), pages 905-927, September.
    13. Oczkowski, Edward, 1998. "The impact of market clearing assumptions and dynamics on demand elasticities," Economics Letters, Elsevier, vol. 59(1), pages 39-43, April.
    14. Alan S. Blinder, 1983. "A Skeptical Note on the New Econometrics," NBER Working Papers 1092, National Bureau of Economic Research, Inc.
    15. Daniel S. Hamermesh, 1983. "New Measures of Labor Cost: Implications for Demand Elasticities and Nominal Wage Growth," NBER Chapters, in: The Measurement of Labor Cost, pages 287-308, National Bureau of Economic Research, Inc.
    16. Kooiman, Peter & Van Dijk, Herman K. & Thurik, A. Roy, 1985. "Likelihood diagnostics and Bayesian analysis of a micro-economic disequilibrium model for retail services," Journal of Econometrics, Elsevier, vol. 29(1-2), pages 121-148.
    17. Akhand Akhtar Hossain, 2008. "Rural Labour Market Developments, Agricultural Productivity, and Real Wages in Bangladesh, 1950–2006," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(1), pages 89-114.
    18. Rappai Gábor & Fűrész Diána Ivett, 2018. "Handling heteroskedasticity in labour demand functions of athletes," Croatian Review of Economic, Business and Social Statistics, Sciendo, vol. 4(2), pages 47-56, November.
    19. Hans Bonesrønning & Torberg Falch & Bjarne Strøm, 2003. "Teacher Sorting, Teacher Quality, and Student Composition: Evidence from Norway," Working Paper Series 3403, Department of Economics, Norwegian University of Science and Technology.
    20. repec:eee:labchp:v:1:y:1986:i:c:p:429-471 is not listed on IDEAS
    21. Heidi Schelbert, 1985. "Zur Arbeitsmarktforschung in der Schweiz," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 121(III), pages 285-305, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:19:y:1985:i:2:p:193-197. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolet .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.