Do labor costs affect companies' demand for labor?

Daniel Hamermesh

IZA World of Labor, 2014, No 3, 3

Abstract: Higher labor costs (higher wage rates and employee benefits) make workers better off, but they can reduce companies' profits, the number of jobs, and the hours each person works. Overtime pay, hiring subsidies, the minimum wage, and payroll taxes are just a few of the policies that affect labor costs. Policies that increase labor costs can substantially affect both employment and hours, in individual companies as well as the overall economy.

Keywords: labor demand; wages; employee benefits (search for similar items in EconPapers)
JEL-codes: J20 J23 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

Downloads: (external link)
http://wol.iza.org/articles/do-labor-costs-affect- ... mand-for-labor-1.pdf (application/pdf)
http://wol.iza.org/articles/do-labor-costs-affect-companies-demand-for-labor (text/html)

Related works:
Journal Article: Do labor costs affect companies’ demand for labor? (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izawol:journl:y:2014:n:3

Access Statistics for this article

IZA World of Labor is currently edited by Pierre Cahuc

More articles in IZA World of Labor from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Institute of Labor Economics (IZA) ().