Arbeitspapier

The Own-Wage Elasticity of Labor Demand: A Meta-Regression Analysis

Firms' labor demand responses to wage changes are of key interest in empirical research and policy analysis. However, despite extensive research, estimates of labor demand elasticities remain subject to considerable heterogeneity. In this paper, we conduct a comprehensive meta-regression analysis to re-assess the empirical literature on labor demand elasticities. Building on 942 elasticity estimates from 105 different studies, we identify sources of variation in the absolute value of this elasticity. Heterogeneity due to the theoretical and empirical specification of the labor demand model, different datasets used or sectors and countries considered explains more than 80% of the variation in the estimates. We further find substantial evidence for the presence of publication selection bias, as estimates of the own-wage elasticity of labor demand are upwardly inflated.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 7958

Klassifikation
Wirtschaft
Labor Demand
Econometric and Statistical Methods and Methodology: General
Survey Methods; Sampling Methods
Thema
labor demand
wage elasticity
meta-analysis

Ereignis
Geistige Schöpfung
(wer)
Lichter, Andreas
Peichl, Andreas
Siegloch, Sebastian
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2014

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Lichter, Andreas
  • Peichl, Andreas
  • Siegloch, Sebastian
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2014

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