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Why do macro wage elasticities diverge? A meta analysis

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  • Kees Folmer

Abstract

This study analyses macro elasticities of the gross yearly wage per employee. From some 90 books, articles and working papers, more than 1000 elasticities have been extracted. The results indicate that the dynamic specification of the wage equation, the choice of explanatory variables and restrictions on estimated coefficients all have their impact on estimated elasticities. From the results, we generate benchmark values for each type of elasticity that may be useful to calibrate policy simulation models.

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  • Kees Folmer, 2009. "Why do macro wage elasticities diverge? A meta analysis," CPB Discussion Paper 122, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:discus:122
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    • C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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