Elasticity of demand for labor in Uruguay

The objective of this research is to estimate the long-run elasticities of labour demand for Uruguay (1986-2005). The elasticities were estimated using Johansen cointegration analysis and the vector error correction model. We found that the aggregate labour demand is relatively inelastic with respec...

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Detalles Bibliográficos
Autores principales: Porras, Sylvina, Melognio, Eliana
Formato: Artículo revista
Lenguaje:Español
Publicado: Instituto de Economía y Finanzas. Facultad de Ciencias Económicas. Universidada Nacional de Córdoba. 2012
Materias:
J23
J32
Acceso en línea:https://revistas.unc.edu.ar/index.php/REyE/article/view/10252
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Sumario:The objective of this research is to estimate the long-run elasticities of labour demand for Uruguay (1986-2005). The elasticities were estimated using Johansen cointegration analysis and the vector error correction model. We found that the aggregate labour demand is relatively inelastic with respect to changes in labour cost and more elastic when the universe is bounded to private dependent work. It’s close to unity with respect to product and the response of labour demand to change in capital cost seems to be the same as the response to change in labour cost with opposite sign.