The Impact of Growth, Labour Cost and Working Time on Employment: Lessons from the French Experience

30 Pages Posted: 18 Sep 2003

See all articles by Yannick L'Horty

Yannick L'Horty

Université Paris Est

Christophe Rault

IZA Institute of Labor Economics; University of Orleans; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: September 2003

Abstract

To account for employment evolutions at the macro-economic level, we propose a modelling where 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 get a relationship in which employment rises with growth and decreases when labour cost or working time rises in industrial sectors as well as in non-industrial ones. This model then permits to measure retrospectively the contributions of each of the variables to employment inflections since the mid-eighties.

Keywords: Per capita productivity, hourly productivity, labour demand, employment, working time, cointegration, VAR-ECM model

JEL Classification: E24, J22, J23

Suggested Citation

L'Horty, Yannick and Rault, Christophe and Rault, Christophe, The Impact of Growth, Labour Cost and Working Time on Employment: Lessons from the French Experience (September 2003). Available at SSRN: https://ssrn.com/abstract=446340 or http://dx.doi.org/10.2139/ssrn.446340

Yannick L'Horty

Université Paris Est ( email )

Batiment Bois de l'Etang
5 rue Galilee
Champs sur Marne, 77420
France

Christophe Rault (Contact Author)

University of Orleans ( email )

Rue de Blois
BP 6739
LEO, Orleans, Orleans cedex 2 45067
France

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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