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The Impact of Growth, Labour Cost and Working Time on Employment: Lessons from the French Experience

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Author Info

  • L'Horty, Yannick

    ()
    (University of Evry)

  • Rault, Christophe

    ()
    (University of Orléans)

Abstract

To account for employment evolutions at the macro-economic level, we propose a modelling where employment is explained by added value, working time and real labour cost. Estimations using quarterly French macro-economic data are carried out in a multivariate framework for three sets of sectors. We get a relationship in which employment rises with growth and decreases when labour cost or working time rises in industrial sectors as well as in non-industrial ones. This model then permits to measure retrospectively the contributions of each of the variables to employment inflections since the mid-eighties.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 871.

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Length: 30 pages
Date of creation: Sep 2003
Date of revision:
Publication status: published in: Labour, 2005, 19 (3), 595-620
Handle: RePEc:iza:izadps:dp871

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Related research

Keywords: working time; employment; labour demand; hourly productivity; Per capita productivity; cointegration; VAR-ECM model;

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References

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  1. Rault, Christophe, 2000. "Non-causality in VAR-ECM models with purely exogenous long-run paths," Economics Letters, Elsevier, vol. 66(1), pages 7-15, January.
  2. Yannick L'Horty & Jean-Pierre Laffargue, 1997. "Emploi d'équilibre et formation des salaires : une étude sectorielle," Économie et Prévision, Programme National Persée, vol. 127(1), pages 117-135.
  3. Jobert, T., 1992. "Test de recine unitaire : une strategie et sa mise en oeuvre," Papiers d'Economie Mathématique et Applications 92.44, Université Panthéon-Sorbonne (Paris 1).
  4. Osterwald-Lenum, Michael, 1992. "A Note with Quantiles of the Asymptotic Distribution of the Maximum Likelihood Cointegration Rank Test Statistics," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(3), pages 461-72, August.
  5. Schmidt, Peter & Phillips, C B Peter, 1992. "LM Tests for a Unit Root in the Presence of Deterministic Trends," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(3), pages 257-87, August.
  6. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
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Cited by:
  1. Laenen, Wout & Moons, Cindy & Persyn, Damiaan, 2011. "The effect of labour taxes on labour demand: a comparison between Belgium and neighbouring countries," Working Papers 2011/25, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.

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