劳动需求弹性估计

Hiring costs
Hiring costs include the costs associated with: placing advertisements, selecting candidates for interviews, interviewing candidates, selecting candidates for job offers,
Training costs
Training costs include: the explicit cost of hiring trainers and using materials (such as manuals, videotapes, and capital equipment) for training purposes,

In the secondary labor market, hiring costs are generally relatively low.
Hiring costs differences across firms

In the secondary labor market, hiring costs are generally relatively low. Hiring costs in the primary labor market, however, can be very substantial, particularly when a firm is operating in a national labor market.
Employee benefits

legally mandated social insity and unemployment compensation),
Employee benefits


legally mandated social insurance programs (such as social security and unemployment compensation), and privately provided benefits such as health insurance, vacation pay, and pension plans.
Effect of an increase in mandated overtime premium
Training costs and wage offers

low wages - higher turnover rates and lower quality applicants, leading to higher training costs.
Training costs and wage offers

equivalent to an increase in MEH
Effect of an increase in mandated overtime premium

equivalent to an increase in MEH substitution effect: M increases and H decreases
Training costs
Training costs include: the explicit cost of hiring trainers and using materials (such as manuals, videotapes, and capital equipment) for training purposes, the implicit cost of using other workers, raw materials, and capital during informal on-the-job training,
Hiring costs
Hiring costs include the costs associated with: placing advertisements, selecting candidates for interviews, interviewing candidates, selecting candidates for job offers, negotiating job offers, and processing the worker's employment (filling out
Hiring costs
Hiring costs include the costs associated with: placing advertisements, selecting candidates for interviews, interviewing candidates, selecting candidates for job offers, negotiating job offers,
Optimal mix of M and H
MPM MEM
=
MPH MEH
Where: MPM=marginal product of M MEM=marginal expense of M MPH=marginal product of H MEH=marginal expense of H
Effect of an increase in mandated overtime premium

MP of M declines as M increases
Production function
Q=f(M,H)
where: Q = quantity of output M = number of workers H = length of average work week

MP of M declines as M increases MP of H declines as H increases
Chapter 5
Nonwage labor costs Quasi-fixed costs and their effects on demand
Definition of Quasi-fixed cost Not strictly proportional to hours of work Nonwage Effects The choice firms have between hiring more workers and employing those already on the payroll for longer hours.
Nonwage labor costs include: hiring costs, training costs, employee benefits.
Hiring costs
Hiring costs include the costs associated with: placing advertisements,
Firms may increase their use of labor by: adding additional workers,
Optimal mix of employment and hours
Firms may increase their use of labor by: adding additional workers, increasing the length of the workweek,
Quasi-fixed costs

Quasi-fixed costs are costs that vary with the number of workers hired by the firm, but not with hours worked per employee.
Optimal mix of employment and hours
Production function
Q=f(M,H)
where: Q = quantity of output M = number of workers H = length of average work week
Production function
Q=f(M,H)
where: Q = quantity of output M = number of workers H = length of average work week
Training costs
Training costs include: the explicit cost of hiring trainers and using materials (such as manuals, videotapes, and capital equipment) for training purposes, the implicit cost of using other workers, raw materials, and capital during informal on-the-job training, and the opportunity cost of the trainee's time during training.
Hiring costs
Hiring costs include the costs associated with: placing advertisements, selecting candidates for interviews,
Hiring costs
Hiring costs include the costs associated with: placing advertisements, selecting candidates for interviews, interviewing candidates,

Nonwage labor costs
Nonwage labor costs include: hiring costs,
Nonwage labor costs
Nonwage labor costs include: hiring costs, training costs,
Nonwage labor costs


low wages - higher turnover rates and lower quality applicants, leading to higher training costs. high wages - lower turnover rates and higher quality applicants, leading to lower training costs
W4 forms, I9 forms, and adding the worker to the company's insurance and pension plans) in the human resources department of the firm.
Hiring costs differences across firms
Optimal mix of employment and hours
Firms may increase their use of labor by: adding additional workers, increasing the length of the workweek, or some combination of increases in hours and increases in the number of workers.