IDEAS home Printed from https://ideas.repec.org/p/lmu/muenar/20372.html
   My bibliography  Save this paper

Input demand and the short and long-run employment thresholds: An empirical analysis for the German manufacturing sector

Author

Listed:
  • Flaig, Gebhard
  • Rottmann, Horst

Abstract

The concept of the ’employment threshold’ plays an important role in the public discussion of unemployment. The employment threshold is defined as that growth rate of output necessary to keep employment constant despite the continuous rise in productivity. It is related to the Okun coefficient which describes the relationship between the changes in output and unemployment. Many contributions to this debate give the impression that the employment threshold is more or less a structural characteristic independent of economic variables. In this paper we derive short- and long-run employment thresholds from an input demand system and show empirically that they depend on factor prices and capital accumulation. Higher wage rates raise the employment threshold and reduce the probability that a positive output shock will increase employment.

Suggested Citation

  • Flaig, Gebhard & Rottmann, Horst, 2001. "Input demand and the short and long-run employment thresholds: An empirical analysis for the German manufacturing sector," Munich Reprints in Economics 20372, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:20372
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. McFadden, Daniel, 1978. "Cost, Revenue, and Profit Functions," Histoy of Economic Thought Chapters, in: Fuss, Melvyn & McFadden, Daniel (ed.),Production Economics: A Dual Approach to Theory and Applications, volume 1, chapter 1, McMaster University Archive for the History of Economic Thought.
    2. Weiss, Andrew A., 1984. "Systematic sampling and temporal aggregation in time series models," Journal of Econometrics, Elsevier, vol. 26(3), pages 271-281, December.
    3. Falk, Martin & Koebel, Bertrand M., 1997. "The Demand of Heterogeneous Labour in Germany," ZEW Discussion Papers 97-28, ZEW - Leibniz Centre for European Economic Research.
    4. Fuss, Melvyn & McFadden, Daniel, 1978. "Production Economics: A Dual Approach to Theory and Applications (II): Applications of the Theory of Production," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, volume 2, number fuss1978a.
    5. Fuss, Melvyn & McFadden, Daniel (ed.), 1978. "Production Economics: A Dual Approach to Theory and Applications," Elsevier Monographs, Elsevier, edition 1, number 9780444850133.
    6. Lau, Lawrence J., 1978. "Applications of Profit Functions," Histoy of Economic Thought Chapters, in: Fuss, Melvyn & McFadden, Daniel (ed.),Production Economics: A Dual Approach to Theory and Applications, volume 1, chapter 3, McMaster University Archive for the History of Economic Thought.
    7. Berndt, Ernst R. & Hesse, Dieter M., 1986. "Measuring and assessing capacity utilization in the manufacturing sectors of nine oecd countries," European Economic Review, Elsevier, vol. 30(5), pages 961-989, October.
    8. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, September.
    9. Fuss, Melvyn & McFadden, Daniel, 1978. "Production Economics: A Dual Approach to Theory and Applications (I): The Theory of Production," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, volume 1, number fuss1978.
    10. Blinder, Alan S, 1997. "Is There a Core of Practical Macroeconomics That We Should All Believe?," American Economic Review, American Economic Association, vol. 87(2), pages 240-243, May.
    11. Klauder, Wolfgang, 1990. "Zur Entwicklung von Produktivität und Beschäftigungsschwelle," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 23(1), pages 86-99.
    12. Robert N. Horn, 1988. "Analysis," Challenge, Taylor & Francis Journals, vol. 31(4), pages 56-58, July.
    Full references (including those not matched with items on IDEAS)

    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. Torres, Marcelo & Morrison Paul, Catherine J., 2006. "Driving forces for consolidation or fragmentation of the US water utility industry: A cost function approach with endogenous output," Journal of Urban Economics, Elsevier, vol. 59(1), pages 104-120, January.
    2. Sandhu, Gurmit S. & Phillips, W.E. & Percy, Mike, 1992. "Economic Structural Analysis of the Canadian Agricultural Production Sector," Staff Paper Series 232540, University of Alberta, Department of Resource Economics and Environmental Sociology.
    3. Jan-Egbert Sturm & Gerard H. Kuper,, 1996. "The dual approach to the public capital hypothesis: the case of The Netherlands," Working Papers 26, Centre for Economic Research, University of Groningen and University of Twente.
    4. Robert G. Chambers & Erik Lichtenberg, 1994. "Simple Econometrics of Pesticide Productivity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(3), pages 407-417.
    5. Tchale, Hardwick & Sauer, Johannes & Wobst, Peter, 2005. "Impact of Alternative Soil Fertility Management Options on Maize Productivity in Malawi’s Smallholder Farming System," Discussion Papers 276262, University of Bonn, Center for Development Research (ZEF).
    6. Pope, Rulon D. & Just, Richard E., 1996. "Empirical implementation of ex ante cost functions," Journal of Econometrics, Elsevier, vol. 72(1-2), pages 231-249.
    7. Thompson, Henry, 2006. "The applied theory of energy substitution in production," Energy Economics, Elsevier, vol. 28(4), pages 410-425, July.
    8. Iglesias Pinedo, Wilman J., 2021. "The impact of Renewable Energy Standards on the biomass supply and agricultural land demand in the US Great Plains Region," 2021 Annual Meeting, August 1-3, Austin, Texas 314085, Agricultural and Applied Economics Association.
    9. Boys, Kathryn A. & Foster, Kenneth A., 2005. "Bias and Scale Effects of Direct Government Payments," 2005 Annual meeting, July 24-27, Providence, RI 19337, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Perekhozhuk, Oleksandr, 2007. "Marktstruktur und Preisbildung auf dem ukrainischen Markt für Rohmilch," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 41, number 92322.
    11. Eswaramoorthy, K., 1991. "U.S. livestock production and factor demand: a multiproduct dynamic dual approach," ISU General Staff Papers 1991010108000010523, Iowa State University, Department of Economics.
    12. Negri, Donald H. & Brooks, Douglas H., 1988. "The Determinants Of Irrigation Technology Choice," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270403, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Ryu, Sang-Lyul & Won, Jayoun, 2022. "Scale and scope economies in Korean accounting firms around Sarbanes-Oxley regulations," Journal of Asian Economics, Elsevier, vol. 78(C).
    14. Chambers, Robert G. & Pope, Rulon D., 1996. "Aggregable price-taking firms," European Economic Review, Elsevier, vol. 40(2), pages 417-428, February.
    15. Forsund, Finn R., 2009. "Good Modelling of Bad Outputs: Pollution and Multiple-Output Production," International Review of Environmental and Resource Economics, now publishers, vol. 3(1), pages 1-38, August.
    16. Swetlana Renner & Thomas Glauben & Heinrich Hockmann & Pierre Ouellette, 2015. "Primal and dual multi-output flexibility measures," Journal of Productivity Analysis, Springer, vol. 44(2), pages 127-136, October.
    17. Gebhard Flaig & Horst Rottmann, 2007. "Labour Market Institutions and the Employment Intensity of Output Growth. An International Comparison," CESifo Working Paper Series 2175, CESifo.
    18. David Stern, 2011. "Elasticities of substitution and complementarity," Journal of Productivity Analysis, Springer, vol. 36(1), pages 79-89, August.
    19. Sauer, Johannes & Tchale, Hardwick, 2006. "Alternative Soil Fertility Management Options in Malawi - An Economic Analysis," 2006 Annual meeting, July 23-26, Long Beach, CA 21423, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    20. Johannes Sauer & Klaus Frohberg & Henrich Hockmann, 2006. "Stochastic efficiency measurement: The curse of theoretical consistency," Journal of Applied Economics, Universidad del CEMA, vol. 9, pages 139-166, May.

    More about this item

    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:lmu:muenar:20372. 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: Tamilla Benkelberg (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.