The Value of Stable Employment as Inferred from Market Wages,

Abstract

This paper estimates the value employees place on stable employment. Here the term 'stable employment' means a relatively low probability of temporary and/or permanent layoffs. This value is estimated by regressing individual wage rates on exogenous variables and proxy variables for unstable employment. The sign and size of the coefficients on these proxy variables in the wage equation measures the value of stable employment in terms of the hourly wage rate. The wage equation is estimated using the Michigan and Parnes survey data. The results indicate that the wage elasticity with respect to instability is .3. This means that if one industry is 50 percent more stable than another, then other things equal, the more stable industry would have a 15 percent lower wage rate. (Author)

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Document Details

Document Type
Technical Report
Publication Date
Feb 01, 1980
Accession Number
ADA102926

Entities

People

  • Robert P. Trost

Tags

DTIC Thesaurus Topics

  • Classification
  • Coefficients
  • Data Sets
  • Department Of Defense
  • Education
  • Elastic Properties
  • Employment
  • Equations
  • Governments
  • Instability
  • Manpower
  • Manpower Utilization
  • Michigan
  • Personnel Management
  • Probability
  • Security
  • Surveys

Fields of Study

  • Economics

Readers

  • Industrial Economics
  • Regression Analysis.

Technology Areas

  • AI & ML
  • AI & ML - Bayesian Inference