Replication data for: In Search of Labor Demand
- Beaudry, Paul
- Green, David A.
- Sand, Ben M.
AbstractWe propose and estimate a novel specification of labor demand which encompasses search frictions and the role of entrepreneurs in new firm creation. Using city-industry variation over four decades, we estimate the wage elasticity of employment demand to be close to -1 at the industry-city level and -0.3 at the city level. We argue that the difference between these estimates reflects the congestion externalities predicted by the search literature. Our estimates also indicate that entrepreneurship should be treated as a scarce factor in the determination of labor demand. We use our estimates to evaluate the impact of large changes in the minimum wage on employment.
Is supplement to
DOI: 10.1257/aer.20141374 (Text)
Beaudry, Paul, David A. Green, and Ben M. Sand. “In Search of Labor Demand.” American Economic Review 108, no. 9 (September 2018): 2714–57. https://doi.org/10.1257/aer.20141374.
- ID: 10.1257/aer.20141374 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-12