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Price and Quantity Adjustments in the Austrian Labour Markets

Author

Listed:
  • Hofer, Helmut

    (Department of Economics, Institute for Advanced Studies, Vienna)

  • Pichelmann, Karl

    (Department of Economics, Institute for Advanced Studies, Vienna)

  • Schuh, Andreas-Ulrich

    (Ministry of Finance, Vienna)

Abstract

Austria is among the very few countries in the European Union which have managed to maintain comparatively low unemployment rates and high employment rates. In international comparison Austrian unemployment is very stable over the business cycle. This is mainly due to the high sensitivity of the labour force on cyclical conditions and, partly, also on the relatively weak responsiveness of employment to cyclical fluctuations in output, the latter being possibly attributable to the high degree of real wage flexibility in Austria. However, we also found evidence for outsider effects in the Austrian wage setting process stemming from the increased share of long term unemployed, which plausibly reflect human capital effects on reemployment possibilities for persons being unemployed for extended periods of time. Relative wage structures, on the other hand, appear to be rather rigid.

Suggested Citation

  • Hofer, Helmut & Pichelmann, Karl & Schuh, Andreas-Ulrich, 1998. "Price and Quantity Adjustments in the Austrian Labour Markets," Economics Series 57, Institute for Advanced Studies.
  • Handle: RePEc:ihs:ihsesp:57
    as

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    File URL: http://www.ihs.ac.at/publications/eco/es-57.pdf
    File Function: First version, 1998
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    References listed on IDEAS

    as
    1. Werner Roeger & Jan in 't Veld, 1997. "QUEST II. A Multi-Country Business Cycle and Growth Model," European Economy - Economic Papers 2008 - 2015 123, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    2. Karanassou, Marika & Snower, Dennis J., 1995. "A Contribution to Unemployment Dynamics," CEPR Discussion Papers 1176, C.E.P.R. Discussion Papers.
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    Citations

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    Cited by:

    1. Kuhn, Andreas, 2009. "Demand for Redistribution, Support for the Welfare State, and Party Identification in Austria," IZA Discussion Papers 4449, Institute for the Study of Labor (IZA).
    2. repec:wfo:wstudy:59416 is not listed on IDEAS
    3. Alfred Stiglbauer & Florian Stahl & Rudolf Winter-Ebmer & Josef Zweimüller, 2003. "Job Creation and Job Destruction in a Regulated Labor Market: The Case of Austria," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 30(2), pages 127-148, June.
    4. Wolfgang Pollan, 1999. "Estimating the Economic Effects of Immigration in a Not Strictly Segmented Labor Market. The Case of Germany and Austria," WIFO Working Papers 119, WIFO.
    5. Andreas Kuhn, 2010. "Demand for redistribution, support for the welfare state, and party identification in Austria," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 37(2), pages 215-236, May.
    6. Marin, Dalia, 2004. "‘A Nation of Poets and Thinkers’ - Less So with Eastern Enlargement? Austria and Germany," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 77, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    7. Helmut Hofer & Peter Huber, 2003. "Wage and Mobility Effects of Trade and Migration on the Austrian Labour Market," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 30(2), pages 107-125, June.
    8. repec:wfo:wstudy:19839 is not listed on IDEAS
    9. Hofer, Helmut & Weber, Andrea, 2002. "Wage mobility in Austria 1986-1996," Labour Economics, Elsevier, vol. 9(4), pages 563-577, September.
    10. Emilia Del Bono & Andrea Weber, 2008. "Do Wages Compensate for Anticipated Working Time Restrictions? Evidence from Seasonal Employment in Austria," Journal of Labor Economics, University of Chicago Press, vol. 26, pages 181-221.
    11. repec:clr:wugarc:y:2017v:43i:3p:379 is not listed on IDEAS
    12. Dalia Marin, 2011. "The Opening Up of Eastern Europe at 20: Jobs, Skills and Reverse Maquiladoras in Austria and Germany," Chapters,in: International Handbook on the Economics of Integration, Volume II, chapter 13 Edward Elgar Publishing.
    13. Thomas URL & Josef BAUMGARTNER & Helmut HOFER & Serguei KANIOVSKI & Andreas U. SCHUH, "undated". "A Long-run Macroeconomic Model of the Austrian Economy (A-LMM)," EcoMod2004 330600143, EcoMod.
    14. Andreas Kuhn, 2009. "Demand for Redistribution, Support for the Welfare State, and Party Identification in Austria," NRN working papers 2009-17, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    15. repec:onb:oenbwp:y::i:78:b:1 is not listed on IDEAS
    16. Marin, Dalia, 2004. "'A Nation of Poets and Thinkers' - Less So with Eastern Enlargement? Austria and Germany," Discussion Papers in Economics 329, University of Munich, Department of Economics.
    17. repec:wfo:wstudy:42874 is not listed on IDEAS
    18. Smirnych, Larissa & Woergoetter, Andreas, 2000. "Einkommen, Geschlecht und Arbeitsplatzwechsel in Russland 1998. Earnings, Gender, and Mobility in the RF 1995-1998," Transition Economics Series 15, Institute for Advanced Studies.
    19. Jiří Večerník, 2001. "Earnings disparities in the czech republic: evidence of the past decade and cross-national comparison," Prague Economic Papers, University of Economics, Prague, vol. 2001(3).
    20. Peter Huber, 1998. "High Growth and Fast Structural Change in Lower Austria," WIFO Monatsberichte (monthly reports), WIFO, vol. 71(12), pages 855-863, December.
    21. Alfred Stiglbauer & Florian Stahl & Rudolf Winter-Ebmer & Josef Zweimüller, 2003. "Job Creation and Job Destruction in a Regulated Labor Market: The Case of Austria," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 30(2), pages 127-148, June.
    22. Andreas Kuhn, 2009. "Demand for Redistribution, Support for the Welfare State, and Party Identification in Austria," IEW - Working Papers 440, Institute for Empirical Research in Economics - University of Zurich.
    23. repec:wfo:wstudy:37425 is not listed on IDEAS
    24. repec:wfo:wstudy:59410 is not listed on IDEAS

    More about this item

    Keywords

    Austrian labour market; Real wage flexibility in Austria; Labour market dynamics; Relative wage structures;

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J4 - Labor and Demographic Economics - - Particular Labor Markets
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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