Accounting Labor Market Equilibrium: Explaining and Predicting Changes in Accounting Labor Demand and Supply

39 Pages Posted: 30 Sep 2004

See all articles by Matthew J. Anderson

Matthew J. Anderson

Michigan State University - The Eli Broad College of Business and The Eli Broad Graduate School of Management

Gregory J. Gerard

Florida State University - College of Business

Malcolm McLelland

McLelland + Palazzi | Financial economics

Date Written: September 29, 2004

Abstract

Price and unit demand for accounting labor, and for accounting education, declined during the 1990s. Statements by both academics and practitioners nonetheless suggest accounting knowledge has become more valuable over time, and that the accounting labor market is in disequilibrium. Policy interventions have been proposed to correct the ostensible imbalance in accounting labor supply and demand. We develop a general equilibrium model of the accounting labor market to explore such issues. Empirical data from 1990-1997 is used to calibrate parameter values of the model, and such values are generally consistent with accounting labor market equilibrium. Inferences to the contrary may derive from the failure to recognize that accounting knowledge is complementary with other types of knowledge in producing business information. Examination of the model and calibration results suggests complementarities between accounting and other types of knowledge in the business and information disciplines have important implications for business education policy and curricula, as well as for regulation of the accounting profession.

Keywords: Equilibrium, labor, human capital production, accounting

JEL Classification: M40, M44, J44

Suggested Citation

Anderson, Matthew J. and Gerard, Gregory J. and McLelland, Malcolm, Accounting Labor Market Equilibrium: Explaining and Predicting Changes in Accounting Labor Demand and Supply (September 29, 2004). Available at SSRN: https://ssrn.com/abstract=597342 or http://dx.doi.org/10.2139/ssrn.597342

Matthew J. Anderson

Michigan State University - The Eli Broad College of Business and The Eli Broad Graduate School of Management ( email )

East Lansing, MI 48824-1121
United States

Gregory J. Gerard

Florida State University - College of Business ( email )

346 Rovetta Business Building
Tallahassee, FL 32306-1110
United States

Malcolm McLelland (Contact Author)

McLelland + Palazzi | Financial economics ( email )

Rua Padre Carvalho 408
Pinheiros
Sao Paulo, Sao Paulo 05427-020
Brazil

HOME PAGE: http://www.mclelland-palazzi.com.br

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