Labor Demand Responses to Changing Gas Prices

Bossler M, Moog A, Schank T (2023)

Publication Type: Journal article

Publication year: 2023

Journal

B E Journal of Economic Analysis & Policy Walter de Gruyter

Book Volume: 23

Pages Range: 1073-1080

Journal Issue: 4

DOI: 10.1515/bejeap-2023-0114

Abstract

In course of the current energy crisis, the consequences of increasing gas prices are heavily discussed. To date, however, there is no evidence of the impact of gas prices on the labor market. Using administrative employment data from 2012 to 2020, we find for manufacturing establishments a gas price elasticity of labor demand of -0.02, likely reflecting a scale effect. We also show that a rise in the gas price leads to an increase in establishment closure. A negative impact of the gas price on wages of 2 percent is consistent with rent-sharing.

Involved external institutions

Julius-Maximilians-Universität Würzburg DE Germany (DE) Johannes Gutenberg-Universität Mainz (JGU) DE Germany (DE)

How to cite

APA:

Bossler, M., Moog, A., & Schank, T. (2023). Labor Demand Responses to Changing Gas Prices. B E Journal of Economic Analysis & Policy, 23(4), 1073-1080. https://dx.doi.org/10.1515/bejeap-2023-0114

MLA:

Bossler, Mario, Alexander Moog, and Thorsten Schank. "Labor Demand Responses to Changing Gas Prices." B E Journal of Economic Analysis & Policy 23.4 (2023): 1073-1080.

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