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⏲ Duration: 10 min 90 sec
✓ Published: 03-Sep-2013
✓ Published: 03-Sep-2013
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This is a brief overview of Ehrenberg chapter 4 focusing on the concept of demand elasticity with respect to labor demand.The basic notion is how responsive is the demand for labor to a change in wages?The empirical concept is elasticity=the percentage change in labor demanded due to a percentage change in wages.We expect labor demand elasticity to be negative but is it elastic (i.e. sensitive) or inelastic (i.e. insensitive) to a change in wages?Usually in a labor market , the sensitivi
This is a brief overview of Ehrenberg chapter 4 focusing on the concept of demand elasticity with respect to labor demand.The basic notion is how responsive is the demand for labor to a change in wages?The empirical concept is elasticity=the percentage change in labor demanded due to a percentage change in wages.We expect labor demand elasticity to be negative but is it elastic (i.e. sensitive) or inelastic (i.e. insensitive) to a change in wages?Usually in a labor market , the sensitivi
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