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Title: How Cyclical Is the User Cost of Labor?
Resulting in 1 citation.
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Kudlyak, Marianna |
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How Cyclical Is the User Cost of Labor? The Journal of Economic Perspectives 38,2 (Spring 2024): 159-180. Also: https://www.jstor.org/stable/27301890 Cohort(s): NLSY79, NLSY97 Publisher: American Economic Association Keyword(s): Employment; Employment Tenure; Hiring Process; Labor Demand; Labor Economics; Labor Market; Labor User Cost; Wages; Wages, Starting Permission to reprint the abstract has not been received from the publisher. In employment relationships, a wage is an installment payment on an implicit long-term agreement between a worker and a firm. The price of labor that impacts firm's hiring decisions, instead, reflects the hiring wage as well as the impact of economic conditions at the time of hiring on future wages. Measured by the labor's user cost, the price of labor is substantially more pro-cyclical than the new-hire wage or the average wage. The strong procyclicality of the price of labor calls for other forces for cyclical labor demand to explain employment fluctuations. |
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Bibliography Citation
Kudlyak, Marianna. "How Cyclical Is the User Cost of Labor?" The Journal of Economic Perspectives 38,2 (Spring 2024): 159-180.
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