The impact of growth, labour cost and working time on employment: lessons from the French experience
L'Horty,Yannick ; Rault, Christophe
Labour. Review of Labour Economics and Industrial Relations
2005
19
3
September
595-620
economic analysis ; economic growth ; employment ; labour cost ; working time
Employment
English
Bibliogr.
"In order to account for the evolution of employment at the macro-economic level, we have developed a model wherein employment is explained by added value, working time and real labour cost. Estimations using quarterly French macro-economic data are carried out in a multivariate framework for three sets of sectors. We obtain a relationship in which employment rises when there is growth and falls when labour cost or working time rises, in both industrial and non-industrial sectors. This model then allows retrospective measurement of the contributions of each of the variables with respect to employment inflections since the mid-1980s."
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