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Demande de travail et élasticité des heures au salaire

Author

Listed:
  • Muriel Roger
  • Sébastien Roux

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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    Cited by:

    1. repec:pri:cepsud:223shephard is not listed on IDEAS
    2. Andrew Shephard, 2017. "Equilibrium Search And Tax Credit Reform," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 58(4), pages 1047-1088, November.
    3. Andrew Shephard, 2011. "Equilibrium Search and Tax Credit Reform," Working Papers 1336, Princeton University, Department of Economics, Center for Economic Policy Studies..

    More about this item

    Keywords

    labor demand; elasticity; equilibrium search;
    All these keywords.

    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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