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A note on the calculation of firm-specific and skill-specific labor costs from firm-Ievel data

Author

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  • Kaiser, Ulrich

Abstract

Virtually all empirical firm-level studies on the demand for labor do not include labor cost in the econometric specification. This is due to the fact that business and innovation survey data usually lack information on labor cost. This paper shows how reliable skill-specific and firm-specific labor cost can be calculated from firm-level data on the basis of information on total labor cost and firms' skill mix only. The simple method proposed here is applied to German innovation survey data.

Suggested Citation

  • Kaiser, Ulrich, 2000. "A note on the calculation of firm-specific and skill-specific labor costs from firm-Ievel data," ZEW Discussion Papers 00-08, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:0008
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    Citations

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    Cited by:

    1. Kaiser, Ulrich & Pohlmeier, Winfried, 2000. "Efficient Bargaining and the Skill-Structure of Wages and Employment," CoFE Discussion Papers 00/24, University of Konstanz, Center of Finance and Econometrics (CoFE).
    2. Hempell, Thomas, 2002. "What's Spurious, What's Real? Measuring the Productivity Impacts of ICT at the Firm-Level," ZEW Discussion Papers 02-42, ZEW - Leibniz Centre for European Economic Research.

    More about this item

    Keywords

    labor cost; Kernel density estimation;

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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