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Grupo de Estudos Monetários e Financeiros

Estudos do GEMF, N.º 13 de 2005


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?

(Publicado em Journal of Labor Research 29(2): 114-137, 2008) 

John T. Addison
University of South Carolina (USA); GEMF/Universidade de Coimbra (Portugal) and IZA (Germany)

Lutz Bellmann
Institut für Arbeitsmarkt- und Berufsforschung der Bundesagentur für Arbeit, Universität Hannover and IZA (Germany)

Thorsten Schank
Wirtschafts- und Sozialwissenschaftliche Fakultät, Universität Erlangen-Nürnberg (Germany)

Paulino Teixeira
Faculdade de Economia and GEMF, Universidade de Coimbra

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.

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

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

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