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Testing Theories of Job Creation : Does Supply Create Its Own Demand?

Author: Mikael Carlsson; Stefan Eriksson; Nils Gottfries
Publisher: München : CESifo, Center for Economic Studies & Ifo Institute for economic research, 2006.
Series: CESifo working paper series, 1866.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Database:WorldCat
Summary:
Although search-matching theory has come to dominate labor economics in recent years, few attempts have been made to compare the empirical relevance of search-matching theory to efficiency wage and bargaining theories, where employment is determined by labor demand. In this paper we formulate an empirical equation for net job creation, which encompasses search-matching theory and a standard labor demand model.  Read more...
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Details

Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Mikael Carlsson; Stefan Eriksson; Nils Gottfries
OCLC Number: 429461442
Description: 1 online resource (Text.)
Series Title: CESifo working paper series, 1866.
Responsibility: Mikael Carlsson, Stefan Eriksson, Nils Gottfries.

Abstract:

Although search-matching theory has come to dominate labor economics in recent years, few attempts have been made to compare the empirical relevance of search-matching theory to efficiency wage and bargaining theories, where employment is determined by labor demand. In this paper we formulate an empirical equation for net job creation, which encompasses search-matching theory and a standard labor demand model. Estimation on firm-level data yields support for the labor demand model, wages and product demand affect job creation, but we find no evidence that unemployed workers contribute to job creation, as predicted by search-matching theory.

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