Labor Demand in Frictional Markets

Abstract

"The own-wage elasticity of labor demand represents the effect of higher wages on the demand for labor and, thus, determines the impact of supply shocks, minimum wages, or collective wage agreements on the labor market. Both theoretical models and the body of empirical evidence state that an increase in the wage rate makes establishments reduce their labor demand. This dissertation contains three scientific essays that provide new empirical evidence on the own-wage elasticity of labor demand. The analysis covers the German labor market and focuses on the interaction of labor demand and frictions, namely coordination or transaction barriers that interfere with the functioning of the market mechanism. Apart from analyzing labor demand, the estimated models and elasticities also contribute to the understanding of the following features of the German labor market: job polarization, minimum wages, and labor shortage." (Author's abstract, IAB-Doku) ((en))

Cite article

Popp, M. (2021): Labor Demand in Frictional Markets. Erlangen, 281 p.