The Demand for Labor: An Analysis Using Matched Employer-Employee Data from the German Liab. Will the High Unskilled Worker Own-Wage Elasticity Please Stand Up?

35 Pages Posted: 18 Oct 2005

See all articles by John T. Addison

John T. Addison

University of South Carolina - Moore School of Business - Department of Economics; IZA Institute of Labor Economics

Lutz Bellmann

Institute for Employment Research (IAB); Institute for the Study of Labor (IZA)

Thorsten Schank

University of Erlangen-Nuremberg

Paulino Teixeira

Universidade de Coimbra - Faculdade de Economia; Center for European Economic Research (ZEW)

Date Written: September 2005

Abstract

This paper uses matched employee-employer LIAB data to provide panel estimates of the structure of labor demand in Germany, 1993-2002, distinguishing between highly skilled, skilled, and unskilled labor and between the manufacturing and service sectors. Reflecting current preoccupations, our demand analysis seeks also to accommodate the impact of technology and trade in addition to wages. The bottom-line interests are to provide elasticities of the demand for unskilled (and other) labor that should assist in short-run policy design and to identify the extent of skill biases or otherwise in trade and technology.

Keywords: labor demand, own-wage/cross-wage elasticities, trade, technology, organizational change, linked employee-employer data, panel estimates

JEL Classification: F15, J23, J31, O33, F15

Suggested Citation

Addison, John T. and Bellmann, Lutz and Schank, Thorsten and Teixeira, Paulino, The Demand for Labor: An Analysis Using Matched Employer-Employee Data from the German Liab. Will the High Unskilled Worker Own-Wage Elasticity Please Stand Up? (September 2005). IZA Discussion Paper No. 1780. Available at SSRN: https://ssrn.com/abstract=826386

John T. Addison (Contact Author)

University of South Carolina - Moore School of Business - Department of Economics ( email )

The Francis M. Hipp Building
1705 College Street
Columbia, SC 29208
United States
803-777-7400 (Phone)
803-777-6876 (Fax)

HOME PAGE: http://mooreschool.sc.edu/moore/economics/profiles/addison.htm

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Lutz Bellmann

Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany
+49 911 179 3046 (Phone)
+49 911 179 3297 (Fax)

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

Thorsten Schank

University of Erlangen-Nuremberg ( email )

Schloßplatz 4
Erlangen, Bavaria 91054
Germany

Paulino Teixeira

Universidade de Coimbra - Faculdade de Economia ( email )

Av. Dias da Silva, 165
Coimbra, 3004-512
Portugal

Center for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

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