Labor Utilization and Nonwage Labor Costs in a Disequilibrium Macro Framework

Entorf, H.;Konig, H.;Pohlmeier, W.
(1992) CONF ON NEW ISSUES IN WAGES, NON-WAGES AND UNEMPLOYMENT — Location: CORSENDONK(Belgium)

Files

pdfdocument.pdf
  • Restricted Access
  • Adobe PDF
  • 454.6 KB
No access

Details

Authors
  • Entorf, H.
    Author
  • Konig, H.
    Author
  • Pohlmeier, W.
    Author
Abstract
The literature on labor utilization and nonwage labor costs is extended to incorporate recent approaches to macroeconomic disequilibrium modeling based on the "smoothing by aggregation" principle. This leads to a reformulation of the basic Sneessens-Dreze type model by treating employment and working hours as separate inputs. The inclusion of nonwage labor costs serves a double purpose: first, they represent a restriction in the profit maximizing process and, second, they serve as a proxy for the fixity of labor. The results differ substantially from simulation studies that disregard the utilization of labor and the nonlinear structure of labor costs.
Affiliations

Citations

  • APA
  • Chicago
  • FWB

Entorf, H., Konig, H., & Pohlmeier, W. (1992). Labor Utilization and Nonwage Labor Costs in a Disequilibrium Macro Framework. The Scandinavian journal of economics, 94(1), 71-83. https://doi.org/10.2307/3440469 (Original work published 1992)