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The Demand for Labor: An Analysis Using Matched Employer-Employee Data from the German LIAB. Will the High Unskilled Worker Own-Wage Elasticity Please Stand Up?

Author

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  • Addison, John T.

    () (University of South Carolina)

  • Bellmann, Lutz

    () (Institute for Employment Research (IAB), Nuremberg)

  • Schank, Thorsten

    () (University of Mainz)

  • Teixeira, Paulino

    () (University of Coimbra)

Abstract

This paper uses matched employee-employer LIAB data to provide panel estimates of the structure of labor demand in Germany, 1993-2002, distinguishing between highly skilled, skilled, and unskilled labor and between the manufacturing and service sectors. Reflecting current preoccupations, our demand analysis seeks also to accommodate the impact of technology and trade in addition to wages. The bottom-line interests are to provide elasticities of the demand for unskilled (and other) labor that should assist in short-run policy design and to identify the extent of skill biases or otherwise in trade and technology.

Suggested Citation

  • Addison, John T. & Bellmann, Lutz & Schank, Thorsten & Teixeira, Paulino, 2005. "The Demand for Labor: An Analysis Using Matched Employer-Employee Data from the German LIAB. Will the High Unskilled Worker Own-Wage Elasticity Please Stand Up?," IZA Discussion Papers 1780, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp1780
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    1. repec:iab:iabzaf:v:41:i:2/3:p:259-285 is not listed on IDEAS
    2. Ljubica Nedelkoska & Simon Wiederhold, 2010. "Technology, outsourcing, and the demand for heterogeneous labor: Exploring the industry dimension," Jena Economic Research Papers 2010-052, Friedrich-Schiller-University Jena.
    3. repec:zbw:rwirep:0056 is not listed on IDEAS
    4. Peichl, Andreas & Siegloch, Sebastian, 2012. "Accounting for labor demand effects in structural labor supply models," Labour Economics, Elsevier, vol. 19(1), pages 129-138.
    5. Andreas Knabe & Ronnie Schöb & Joachim Weimann, 2006. "Marginal Employment Subsidization: A New Concept and a Reappraisal," CESifo Working Paper Series 1707, CESifo Group Munich.
    6. Max Löffler & Andreas Peichl & Nico Pestel & Hilmar Schneider & Sebastian Siegloch, 2012. "Effizient, einfach und gerecht: Ein integriertes System zur Reform von Einkommensteuer und Sozialabgaben," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 13(3), pages 196-213, August.
    7. Horbach, Jens & Janser, Markus, 2016. "The role of innovation and agglomeration for employment growth in the environmental sector," Annual Conference 2016 (Augsburg): Demographic Change 145500, Verein für Socialpolitik / German Economic Association.
    8. Peichl, Andreas & Schneider, Hilmar & Siegloch, Sebastian, 2010. "Documentation IZAΨMOD: The IZA Policy SImulation MODel," IZA Discussion Papers 4865, Institute for the Study of Labor (IZA).
    9. Ronny Freier & Viktor Steiner, 2007. "'Marginal Employment' and the Demand for Heterogenous Labour: Empirical Evidence from a Multi-factor Labour Demand Model for Germany," Discussion Papers of DIW Berlin 662, DIW Berlin, German Institute for Economic Research.
    10. Bernhard Dachs & Martin Hud & Christian Köhler & Bettina Peters, 2016. "Employment Effects of Innovations over the Business Cycle: Firm-Level Evidence from European Countries," CREA Discussion Paper Series 16-20, Center for Research in Economic Analysis, University of Luxembourg.
    11. Freier, Ronny & Steiner, Viktor, 2007. "‘Marginal Employment’ and the Demand for Heterogenous Labour: Empirical Evidence from a Multi-Factor Labour Demand Model for Germany," IZA Discussion Papers 2577, Institute for the Study of Labor (IZA).
    12. Horbach, Jens & Janser, Markus, 2015. "The role of innovation and agglomeration for employment growth in the environmental sector," IAB Discussion Paper 201516, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    13. Kluve, Jochen & Schaffner, Sandra & Schmidt, Christoph M. & Bredtmann, Julia, 2007. "Beschäftigungseffekte durch (weitere) Lohnspreizung bzw. Niedriglohn: Forschungsprojekt für das Ministerium für Arbeit, Gesundheit und Soziales des Landes Nordrhein-Westfalen. Endbericht - Januar 2007," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 70843.
    14. Singer, Marcos & Obach, Juan José, 2013. "Listening to workers: The overtime versus hiring dilemma," Journal of Business Research, Elsevier, vol. 66(10), pages 1771-1779.
    15. Schneider, Hilmar & Peichl, Andreas & Pestel, Nico & Siegloch, Sebastian & Loeffler, Max, 2012. "Report No. 46: Finanzielle und Beschäftigungswirkungen unterschiedlicher Tarifverläufe alternativer Hinzuverdienstregelungen," IZA Research Reports 46, Institute for the Study of Labor (IZA).
    16. Arnd Kölling, 2014. "Labor Demand and Unequal Payment: Does Wage Inequality matter? Analyzing the Influence of Intra-firm Wage Dispersion on Labor Demand with German Employer-Employee Data," Working Paper Series in Economics 326, University of Lüneburg, Institute of Economics.
    17. Bellmann, Lutz & Cornelißen, Thomas & Hübler, Olaf & Pahnke, André, 2008. "Betriebliche Reorganisation, Entlohnung und Beschäftigungsstabilität (Organisational change, wages and job stability)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 259-285.
    18. Lena Jacobi & Sandra Schaffner, 2008. "Does Marginal Employment Substitute Regular Employment? – A Heterogeneous Dynamic Labor Demand Approach for Germany," Ruhr Economic Papers 0056, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    19. Miguel A. Tovar and Emma M. Iglesias, 2013. "Capital-Energy Relationships: An Analysis when Disaggregating by Industry and Different Types of Capital," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    20. Jacobi, Lena & Schaffner, Sandra, 2008. "Does Marginal Employment Substitute Regular Employment? – A Heterogeneous Dynamic Labor Demand Approach for Germany," Ruhr Economic Papers 56, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    21. Hanan Nazier, 2017. "Estimating Labor Demand Elasticities and Elasticities of Substitution in Egyptian Manufacturing Sector: A Firm Level Static Analysis," Working Papers 1158, Economic Research Forum, revised 11 2017.

    More about this item

    Keywords

    organizational change; technology; trade; own-wage/cross-wage elasticities; labor demand; linked employee-employer data; panel estimates;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • F15 - International Economics - - Trade - - - Economic Integration

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