Labor demand research: Toward a better match between better theory and better data

• Type: Article in International Scientific Journal
• Date: 2014

Authors

John T Addison (Author) Other; Pedro Portugal (Author) Other; Jose Varejao (Author) FEP

Journal

Title: Labour Economics

Vol. 30

Pages: 4-11

ISSN: 0927-5371

Publisher: Elsevier

Indexing

ISI Web of Knowledge - 11 Citations

Scopus - 17 Citations

Scientific classification

FOS: Social sciences > Economics and Business

Other information

Authenticus ID: P-00A-09Y

DOI: 10.1016/j.labeco.2014.06.002

Abstract (EN): At first blush, most advances in labor demand were achieved by the late 1980s. Since then progress might appear to have stalled. We argue to the contrary that significant progress has been made in understanding labor market frictions and imperfections, and in modeling search behavior and heterogeneous preferences. Perhaps most notable have been the improvements in data, in the form of longitudinal matched employer-employee data, and in techniques and algorithms (e.g. for solving heterogeneous parameter models). In short, the Cinderella status of the field is frankly overdrawn. Nevertheless, a chief lacuna remains the need for a better match between theory and data. This paper provides a critical albeit eclectic assessment of these developments, along the dimensions of the static and dynamic theory of labor demand, wage formation, and estimation, noting advances and limitations. As is conventional, somewhat greater emphasis is placed on the latter.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 8