CEU Electronic Theses and Dissertations, 2013
| Author | Krrikyan, Vahe |
|---|---|
| Title | Estimating the Demand for Heterogeneous Labor in Hungary During the Pre-Crisis and Crisis Periods |
| Summary | In this thesis I study the demand for heterogeneous labor in Hungary in the last decade. Using a linked employer-employee database of Hungarian firms belonging to retail trade, food, textile and electronics manufacturing industries for the years from 2000 to 2009 I investigate whether the demand for unskilled, medium-skilled and high-skilled labor has been influenced by the economic developments in the pre-Crisis period and during the Crisis. I estimate the dynamic and static demand for heterogeneous labor and find that while the short-run elasticity of demand for unskilled labor was unresponsive to wages in the period from 2003 to 2007, the long-run elasticity hadn’t changed since 1999. At the same time both the short-run and long-run elasticities of demand for medium-skilled and high-skilled employment decreased in absolute value. The estimation results also show that both the short-run and long-run elasticities of demand for all skill types of labor (except for the short-run elasticity of demand for high-skilled) have increased in absolute value during the Crisis, implying that the financial constraints of firms caused by the decline of effective demand for products and services have made firms more responsive to wage changes. The long-run elasticities are higher than the short-run elasticities in both periods meaning that firms incur adjustment costs when changing the employment of all skill types. |
| Supervisor | Earle, John, Sutherland |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2013/krrikyan_vahe.pdf |
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