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Demande de travail et élasticité des heures au salaire

Author

Listed:
  • Muriel Roger
  • Sébastien Roux

Abstract

Abstract This article examine the theoretical meaning of the elasticity of hours to wages accounting for Labour demand in an on-the-job equilibrium search model framework. A firm posts part and full-time job offers as a result of the trade-off between its demand variability, its wage costs and its hiring costs. Utility as a function of wages and the number of weekly worked hours is the criterion workers consider when accepting or rejecting job offers. We prove the existence of a Nash equilibrium, in which all firms hire both part- and full-time workers. Simulating the model, we show that the relationship between hours and wages depends dramatically on the firm’s demand shape parameter and not on the individual preference for leisure. JEL Classification – J22, J23, J64.

Suggested Citation

  • Muriel Roger & Sébastien Roux, 2009. "Demande de travail et élasticité des heures au salaire," Recherches économiques de Louvain, De Boeck Université, vol. 75(1), pages 63-91.
  • Handle: RePEc:cai:reldbu:rel_751_0063
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    More about this item

    Keywords

    labor demand; elasticity; equilibrium search;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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