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The Impact of Growth, Labour Cost and Working Time on Employment: Lessons from the French Experience

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Listed:
  • Yannick L'Horty

    (EPEE, University of Evry Val d’Essonne)

  • Christophe Rault

    (EPEE, University of Evry Val d’Essonne and IZA)

Abstract

In order to account for the evolution of employment at the macro-economic level, we have developed a model wherein employment is explained by added value, working time and real labour cost. Estimations using quarterly French macro-economic data are carried out in a multivariate framework for three sets of sectors. We obtain a relationship in which employment rises when there is growth and falls when labour cost or working time rises, in both industrial sectors and non-industrial ones. This model then allows the contributions of each of the variables with respect to employment inflections since the mid-eighties to be measured retrospectively.

Suggested Citation

  • Yannick L'Horty & Christophe Rault, 2003. "The Impact of Growth, Labour Cost and Working Time on Employment: Lessons from the French Experience," Documents de recherche 03-08, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    • Handle: RePEc:eve:wpaper:03-08
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    Cited by:

    1. Laenen, Wout & Moons, Cindy & Persyn, Damiaan, 2011. "The effect of labour taxes on labour demand: a comparison between Belgium and neighbouring countries," Working Papers 2011/25, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.

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    More about this item

    Keywords

    Per capita productivity; hourly productivity; labour demand; employment; working time; co-integration; VAR-ECM model;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • 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

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