Employment and Deadweight Loss Effects of Observed Nonwage Labor Costs.
To assess the employment effects of labor costs, it is crucial to have reliable estimates of the labor cost elasticity of labor demand. Using a matched firm-worker data set, we estimate a long-run unconditional labor demand function, exploiting information on workers to correct for endogeneity in th...
| Publicado en: | Economic Inquiry Vol. 48; no. 3; pp. 793 - 810 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
July 2010
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=510885666&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 510885666 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00952583 EIQ jtl: Economic Inquiry issn: 00952583 maglogo: N pubinfo: dt: July 2010 vid: 48 iid: 3 pid: 480 pub: Wiley-Blackwell artinfo: ui: 510885666 10.1111/j.1465-7295.2009.00190.x ppf: 793 ppct: 17 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 2.5MB tig: atl: Employment and Deadweight Loss Effects of Observed Nonwage Labor Costs. aug: au: Aguilar, Giovanna Rendon, Sílvio su: Labor costs Mathematical models Mathematical models of job vacancies Labor demand Wages sug: subj: Labor costs Mathematical models Mathematical models of job vacancies Labor demand Wages keyword: Wages -- Mathematical models ab: To assess the employment effects of labor costs, it is crucial to have reliable estimates of the labor cost elasticity of labor demand. Using a matched firm-worker data set, we estimate a long-run unconditional labor demand function, exploiting information on workers to correct for endogeneity in the determination of wages. We evaluate the employment and deadweight loss effects of observed employers' contributions imposed by labor laws (health insurance, training, and taxes) as well as of observed workers' deductions (social security and income tax). We find that nonwage labor costs reduce employment by 17% for white collars and by 53% for blue collars, with associated deadweight losses of 10% and 35% of total contributions, respectively. Since most firms undercomply with mandated employers' and workers' contributions, we find that full compliance would imply employment losses of 4% for white collars and 12% for blue collars, with respective associated deadweight losses of 2% and 6%. (JEL J23, J32). pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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