The Elasticity of Demand for Labour in Australia

The elasticity of demand for labour at the aggregate level is an important parameter for macroeconomic analysis. In particular, policy issues concerning the impact of wage falls on employment and unemployment hinge on the size of this parameter. It is argued in the present paper that previous work o...

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Bibliographic Details
Published in:The Economic record 2002-03, Vol.78 (240), p.18-30
Main Authors: Lewis, Philip E. T., MacDonald, Garry
Format: Article
Language:English
Subjects:
Australia
Australian literature
Costs
Dependent variables
Economic models
Economics
Elasticity of demand
Employment
Error correction & detection
Estimates
Hypotheses
Labor market
Labour
Labour demand
Labour economics
Macroeconomics
Statistical analysis
Studies
Variables
Wages
Wages & salaries
Citations: Items that cite this one
Online Access:Get full text
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Summary:The elasticity of demand for labour at the aggregate level is an important parameter for macroeconomic analysis. In particular, policy issues concerning the impact of wage falls on employment and unemployment hinge on the size of this parameter. It is argued in the present paper that previous work on the elasticity of demand for labour in Australia has been unsatisfactory in a number of ways. A new set of estimates is provided that are derived using a better methodology than before.
ISSN:0013-0249
1475-4932
DOI:10.1111/1475-4932.00036