Do labor costs affect companies' demand for labor?

Daniel Hamermesh

World of Labour, 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
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Citations: View citations in EconPapers (22)

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Journal Article: Do labor costs affect companies’ demand for labor? (2021)
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