Testing theories of job creation
Subtitle: does supply create its own demand?
By: by Mikael Carlsson, Stefan Eriksson, Nils Gottfries
Contributors: Eriksson, Stefan
Series: Discussion paper -- no. 2024; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) -- no. 2024
Publisher: IZA
Published: 2006
Place of publication: Bonn, Germany
Language: eng
Format: [electronic resource] :
Subjects: Job creation; Labor market
Description: "How well do alternative labor market theories explain variations in net job creation? According to search-matching theory, job creation in a firm should depend on the availability of workers (unemployment) and on the number of job openings in other firms (congestion). According to efficiency wage and bargaining theory, wages are set above the market clearing level and employment is determined by labor demand. To compare models, we estimate an encompassing equation for net job creation on firm-level data. The results support demand-oriented theories of job creation, whereas we find no evidence in favor of the search-matching theory"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Title from PDF file as viewed on 3/14/2006.

Includes bibliographical references.

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