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Labor Demand: What Do We Know? What Don't We Know?

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  • Daniel S. Hamermesh

Abstract

This study reviews empirical research on the demand for labor. The static analysis discusses the production parameters describing homogeneous labor and labor disaggregated along various criteria; the distinction between workers and hours; the importance of job dynamics; and the nature of a variety of policies that affect the long-run demand for labor. Issues in the dynamics of demand for workers and hours, including speeds of adjustment for homogeneous and heterogeneous labor, asymmetries, and the nature of adjustment costs are presented. The paper emphasizes how the paucity of appropriate data has limited our ability to obtain reliable estimates of the underlying concepts.

Suggested Citation

  • Daniel S. Hamermesh, 1991. "Labor Demand: What Do We Know? What Don't We Know?," NBER Working Papers 3890, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:3890
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    References listed on IDEAS

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    8. Santiago, Carlos E, 1989. "The Dynamics of Minimum Wage Policy in Economic Development: A Multiple Time-Series Approach," Economic Development and Cultural Change, University of Chicago Press, vol. 38(1), pages 1-30, October.
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    Cited by:

    1. Tyrväinen, Timo, 1992. "Wage setting, taxes and demand for labour : Multivariate analysis of the cointegration relations," Research Discussion Papers 22/1992, Bank of Finland.
    2. Alain Pirotte, 1996. "Estimation de relations de long terme sur données de panel : nouveaux résultats," Économie et Prévision, Programme National Persée, vol. 126(5), pages 143-161.
    3. Hassink, W.H.J. & Broersma, L., 1993. "Labour demand and job-to-job movement : macro-consequences as a result from micro-economic behaviour," Serie Research Memoranda 0001, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    4. repec:zbw:bofrdp:1992_023 is not listed on IDEAS
    5. Tyrväinen, Timo, 1995. "Wage determination in the long run, real wage resistance and unemployment : Multivariate analysis of cointegrating relations in 10 OECD economies," Research Discussion Papers 12/1995, Bank of Finland.
    6. Brigitte Dormont, 1994. "Quelle est l'influence du coût du travail sur l'emploi ?," Revue Économique, Programme National Persée, vol. 45(3), pages 399-414.
    7. Tyrväinen, Timo, 1992. "Tax incidence in union models," Research Discussion Papers 23/1992, Bank of Finland.
    8. repec:zbw:bofrdp:1995_012 is not listed on IDEAS
    9. Jean-Marc Germain, 1997. "Allégements de charges sociales, coût du travail et emploi dans les modèles d'équilibre : enjeux et débats," Économie et Statistique, Programme National Persée, vol. 301(1), pages 73-94.
    10. Tyrväinen, Timo, 1995. "Wage determination in the long run, real wage resistance and unemployment: Multivariate analysis of cointegrating relations in 10 OECD economies," Bank of Finland Research Discussion Papers 12/1995, Bank of Finland.
    11. Pål Boug, 1999. "The Demand for Labour and the Lucas Critique. Evidence from Norwegian Manufacturing," Discussion Papers 256, Statistics Norway, Research Department.
    12. repec:zbw:bofrdp:1992_022 is not listed on IDEAS
    13. Kouretas, Georgios P. & Zarangas, Leonidas P., 2000. "Wage Setting, Taxes, and Demand for Labor in Greece: A Multivariate Analysis of Cointegrating Relationships," Journal of Policy Modeling, Elsevier, vol. 22(2), pages 171-195, March.
    14. Marcus Hagedorn & Iourii Manovskii, 2014. "The Research Agenda: Marcus Hagedorn and Iourii Manovskii on Theory Ahead of Identification," EconomicDynamics Newsletter, Review of Economic Dynamics, vol. 15(1), April.
    15. Tyrväinen, Timo, 1992. "Tax incidence in union models," Bank of Finland Research Discussion Papers 23/1992, Bank of Finland.

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