IDEAS home Printed from https://ideas.repec.org/p/ihs/ihsesp/57.html
   My bibliography  Save this paper

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

    Download full text from publisher

    File URL: https://irihs.ihs.ac.at/id/eprint/1095
    File Function: First version, 1998
    Download Restriction: no
    ---><---

    Other versions of this item:

    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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. 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.
    3. Peter Huber & Helmut Hofer, 2001. "Teilprojekt 9: Auswirkungen der EU-Erweiterung auf den österreichischen Arbeitsmarkt," WIFO Studies, WIFO, number 19839.
    4. Helmut Hofer & Gerlinde Titelbach & Stefan Vogtenhuber, 2017. "Polarisierung am österreichischen Arbeitsmarkt?," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 43(3), pages 379-404.
    5. Dalia Marin, 2011. "The Opening Up of Eastern Europe at 20: Jobs, Skills and Reverse Maquiladoras in Austria and Germany," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume II, chapter 13, Edward Elgar Publishing.
    6. 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.
    7. Julia Bock-Schappelwein & Peter Huber, 2015. "Auswirkungen einer Erleichterung des Arbeitsmarktzuganges für Asylsuchende in Österreich," WIFO Studies, WIFO, number 59410.
    8. Hofer, Helmut & Weber, Andrea, 2002. "Wage mobility in Austria 1986-1996," Labour Economics, Elsevier, vol. 9(4), pages 563-577, September.
    9. 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.
    10. Simon Jäger & Benjamin Schoefer & Samuel Young & Josef Zweimüller, 2020. "Wages and the Value of Nonemployment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(4), pages 1905-1963.
    11. 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(1), pages 181-221.
    12. Jiří Večerník, 2001. "Earnings disparities in the czech republic: evidence of the past decade and cross-national comparison," Prague Economic Papers, Prague University of Economics and Business, vol. 2001(3).
    13. repec:onb:oenbwp:y::i:78:b:1 is not listed on IDEAS
    14. 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.
    15. 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.
    16. 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.
    17. Peter Huber & Stefan Ederer, 2011. "FAMO – Fachkräftemonitoring. Regelmäßige Erhebung des Angebots und des Bedarfs an Fachkräften in der Grenzregion Ostösterreichs mit der Slowakei. FAMO II: Regionale und gesamtwirtschaftliche Entwicklu," WIFO Studies, WIFO, number 42874.
    18. Peter Huber, 1998. "Hohes Wachstum bei raschem Strukturwandel in Niederösterreich," WIFO Monatsberichte (monthly reports), WIFO, vol. 71(12), pages 855-863, December.
    19. Peter Huber, 2009. "FAMO – Fachkräftemonitoring. Regelmäßige Erhebung des Angebots und des Bedarfs an Fachkräften in der Grenzregion Ostösterreichs mit der Slowakei. FAMO I: Wirtschaftliche Entwicklung in der CENTROPE-Re," WIFO Studies, WIFO, number 37425.
    20. Peter Huber & Georg Böhs, 2012. "Auswirkungen der Liberalisierung des österreichischen Arbeitsmarktes für die Arbeitskräfte aus den neuen EU-Ländern auf die Regionen Österreichs," WIFO Studies, WIFO, number 59416.
    21. Thomas URL & Josef BAUMGARTNER & Helmut HOFER & Serguei KANIOVSKI & Andreas U. SCHUH, 2010. "A Long-run Macroeconomic Model of the Austrian Economy (A-LMM)," EcoMod2004 330600143, EcoMod.
    22. 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.
    23. Kuhn, Andreas, 2009. "Demand for Redistribution, Support for the Welfare State, and Party Identification in Austria," IZA Discussion Papers 4449, Institute of Labor Economics (IZA).
    24. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anne Brunila & Marco Buti & Jan In 'T Veld, 2003. "Fiscal Policy in Europe: How Effective Are Automatic Stabilisers?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 30(1), pages 1-24, March.
    2. Acosta, Juan & Rancan, Antonella & Sergi, Francesco, 2022. "Centralised and Decentralised Approaches to Multi-Country Macroeconometric Modelling at the Commission of the European Communities: The Short-Lived EUROLINK Model," Economics & Statistics Discussion Papers esdp22081, University of Molise, Department of Economics.
    3. K. Mc Morrow & W. Röger, 2002. "EU pension reform - An overview of the debate and an empirical assessment of the main policy reform options," European Economy - Economic Papers 2008 - 2015 162, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    4. Loïc Cadiou & Stéphanie Guichard & Mathilde Maurel, 2000. "Disparités institutionnelles et flexibilité des marchés du travail dans l'UE," Économie et Statistique, Programme National Persée, vol. 332(1), pages 49-63.
    5. JACQUINOT Pascal & MIHOUBI Ferhat, 2010. "The Optimality of the Taylor Rule in MARCOS: Some Deterministic and Stochastic Experiments," EcoMod2003 330700073, EcoMod.
    6. Karanassou, Marika & Snower, Dennis J., 1997. "Is the natural rate a reference point?," European Economic Review, Elsevier, vol. 41(3-5), pages 559-569, April.
    7. Maurizio Baussola, 2007. "Modelling a Regional Economic System: The Case of Lombardy," Regional Studies, Taylor & Francis Journals, vol. 41(1), pages 19-38.
    8. Andrés, Javier & Boscá, José E. & Ferri, Javier, 2013. "Household debt and labor market fluctuations," Journal of Economic Dynamics and Control, Elsevier, vol. 37(9), pages 1771-1795.
    9. J¨¹rgen Roth & Simon G. Fauser, 2011. "Reaction Patterns of German Regional Labour Markets to Macroeconomic and Policy-induced Shocks¡ª A Comparative Analysis," Review of Economics & Finance, Better Advances Press, Canada, vol. 1, pages 87-103, February.
    10. Anger, Annela & Köhler, Jonathan, 2010. "Including aviation emissions in the EU ETS: Much ado about nothing? A review," Transport Policy, Elsevier, vol. 17(1), pages 38-46, January.
    11. repec:spo:wpmain:info:hdl:2441/711 is not listed on IDEAS
    12. Marco Ratto & Riccardo Girardi, 2004. "Bayesian Estimation of Total Investment Expenditures For Romanian Economy using DYNARE," Computing in Economics and Finance 2004 151, Society for Computational Economics.
    13. Simeonova-Ganeva, Ralitsa & Ganev, Kaloyan, 2013. "Ефекти От Политиките, Финансирани От Европейските Фондове: Оценяване На Въздействието На Инвестициите В Образование И Наука В България [Effects of EU Funded Policies: Net Impact Assessment of Inves," MPRA Paper 48176, University Library of Munich, Germany.
    14. Minford, Patrick & Ou, Zhirong & Wickens, Michael & Zhu, Zheyi, 2022. "The eurozone: What is to be done to maintain macro and financial stability?," Journal of Financial Stability, Elsevier, vol. 63(C).
    15. José Ramón Cancelo & J. Andrés Faíña & Jesús López-Rodríguez, 2009. "Measuring the Permanent Impact of European Structural Funds on Peripheral Objective 1 Regions: The Case of Galicia," European Planning Studies, Taylor & Francis Journals, vol. 17(10), pages 1535-1558, July.
    16. Burkhard SCHADE, 2010. "Evaluating Economic Feasibility and Technical Progress of Environmentally Sustainable Scenarios by a Backcasting Approach with ESCOT," EcoMod2004 330600125, EcoMod.
    17. Franz, Wolfgang, 1995. "Theoretische Ansätze zur Erklärung der Arbeitslosigkeit: Wo stehen wir 1995?," Discussion Papers 27, University of Konstanz, Center for International Labor Economics (CILE).
    18. Welfe Władysław, 2012. "Multicountry and Regional Macroeconometric Models," Comparative Economic Research, Sciendo, vol. 15(4), pages 293-304, December.
    19. Ansgar H. Belke & Thomas U. Osowski, 2019. "Measuring fiscal spillovers in EMU and beyond: A Global VAR approach," Scottish Journal of Political Economy, Scottish Economic Society, vol. 66(1), pages 54-93, February.
    20. Vincze, János & Bíró, Anikó & Elek, Péter, 2007. "Szimulációk és érzékenységvizsgálatok a magyar gazdaság egy középméretű makromodelljével [Simulations and sensitivity analyses with a medium-sized macro model of the Hungarian economy]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 774-799.
    21. Jeanfils, P., 2001. "A Guided Tour of the World of Rational Expectations Models and Optimal Policies," Papers 16, Warwick - Development Economics Research Centre.

    More about this item

    Keywords

    Austrian labour market; Real wage flexibility in Austria; Labour market dynamics; Relative wage structures;
    All these keywords.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ihs:ihsesp:57. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Doris Szoncsitz (email available below). General contact details of provider: https://edirc.repec.org/data/deihsat.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.