How Do Industries and Firms Respond to Changes in Local Labor Supply?

Christian Dustmann and Albrecht Glitz ()

Journal of Labor Economics, 2015, vol. 33, issue 3, 711 - 750

Abstract: This paper analyzes how changes in the skill mix of local labor supply are absorbed by the economy, distinguishing between three adjustment mechanisms: wages, expansion in size of those production units using the more abundant skill group more intensively, and more intensive use of the more abundant skill group within production units. We contribute to the literature by analyzing these adjustments on the firm rather than industry level, using German administrative data. We show that most adjustments occur within firms through changes in relative factor intensities and that firms entering and exiting the market are an important additional absorption mechanism.

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (170)

Downloads: (external link)
http://dx.doi.org/10.1086/679684 (application/pdf)
http://dx.doi.org/10.1086/679684 (text/html)
Access to the online full text or PDF requires a subscription.

Related works:
Working Paper: How Do Industries and Firms Respond to Changes in Local Labor Supply? (2012)
Working Paper: How Do Industries and Firms Respond to Changes in Local Labor Supply? (2011)
Working Paper: How Do Industries and Firms Respond to Changes in Local Labor Supply? (2011)
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:ucp:jlabec:doi:10.1086/679684

Access Statistics for this article

More articles in Journal of Labor Economics from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().