The Employment Consequences of Technological Advance, Demand and Labor Costs in 16 German Industries

Klaus Zimmermann ()

Empirical Economics, 1991, vol. 16, issue 2, 253-66

Abstract: The decline of employment in German manufacturing industries is often attributed to technological advance, declines in demand and to increases in labor costs. Using business survey data, the study evaluates the relative importance of these determinants in 16 industries. The empirical finding of a series of probit estimates is that in most cases demand plays a dominant role, in some cases technological progress is an important factor, but in not case are labor costs a decisive determinant. Results may depend on the short-run nature of the analysis.

Date: 1991
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