How cyclical is the user cost of labor?

Marianna Kudlyak

In employment relationships, a wage is an installment payment on an implicit long-term agreement between a worker and a firm. The price of labor that impacts firm's hiring decisions, instead, reflects the hiring wage as well as the impact of economic conditions at the time of hiring on future wages. Measured by the labor's user cost, the price of labor is substantially more pro-cyclical than the new-hire wage or the average wage. The strong procyclicality of the price of labor calls for other forces for cyclical labor demand to explain employment fluctuations.

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Year of publication:	March 2024
Authors:	Kudlyak, Marianna
Publisher:	Bonn, Germany : IZA - Institute of Labor Economics
Subject:	user cost of labor \| wages \| cyclicality \| wage rigidity \| unemployment \| Konjunktur \| Business cycle \| Lohnrigidität \| Wage rigidity \| Arbeitskosten \| Labour costs \| Arbeitslosigkeit \| Unemployment \| Theorie \| Theory \| Schätzung \| Estimation \| Lohn \| Wages \| Reallohn \| Real wages

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Extent:	1 Online-Ressource (circa 26 Seiten) Illustrationen
Series:	Discussion paper series / IZA. - Bonn : IZA, ZDB-ID 2120053-1. - Vol. no. 16888
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	hdl:10419/295911 [Handle]
Classification:	E24 - Employment; Unemployment; Wages ; E32 - Business Fluctuations; Cycles ; J30 - Wages, Compensation, and Labor Costs. General ; J41 - Contracts: Specific Human Capital, Matching Models, Efficiency Wage Models, and Internal Labor Markets ; J63 - Turnover; Vacancies; Layoffs ; J64 - Unemployment: Models, Duration, Incidence, and Job Search
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014507553