'Marginal employment' and the demand for heterogeneous labour - elasticity estimates from a multi-factor labour demand model for Germany

We develop a structural multi-factor labour demand model which distinguishes between eight labour categories including marginal employment, i.e. low-paying jobs with only a few working hours and partially exempted from employee's social security contributions. Using a new panel data set for Ger...

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Veröffentlicht in:Applied economics letters 2010-08, Vol.17 (12), p.1177-1182
Hauptverfasser: Freier, Ronny, Steiner, Viktor
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container_title Applied economics letters
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creator Freier, Ronny
Steiner, Viktor
description We develop a structural multi-factor labour demand model which distinguishes between eight labour categories including marginal employment, i.e. low-paying jobs with only a few working hours and partially exempted from employee's social security contributions. Using a new panel data set for Germany, the model is estimated both for the number of workers and total working hours. For unskilled and skilled workers in full-time employment, we find labour demand elasticities similar to previous estimates. Our new estimates of own-wage elasticities for marginal employment range between −0.13 (number of male workers in West Germany) to −1 (working hours for women).
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subjects Demand
Economic analysis
Elasticity
Elasticity of demand
Employment
Estimating techniques
Estimation
Germany
Hours of work
Labor market
Labour demand
Modelling
Studies
Workers
Working hours
title 'Marginal employment' and the demand for heterogeneous labour - elasticity estimates from a multi-factor labour demand model for Germany
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