Download This PaperIs There Chronic Excess Supply of Labor? Designing a Statistical Test
13 Pages Posted: 27 Jun 2007 Last revised: 17 Feb 2023
Date Written: April 1985
Abstract
In this paper we present and implement a statistical test of the hypothesis that the labor market has chronic excess supply. The procedure is to estimate a disequilibrium labor market model, and construct a test statistic based on the unconditional probability that there is excess supply each period. We find that the data reject the hypothesis of chronic excess supply. Hence, one cannot assume that all observations lie on the demand curve.
Suggested Citation: Suggested Citation
Quandt, Richard E. and Rosen, Harvey S., Is There Chronic Excess Supply of Labor? Designing a Statistical Test (April 1985). NBER Working Paper No. t0046, Available at SSRN: https://ssrn.com/abstract=994218
Harvey S. Rosen
Princeton University - Department of Economics ( email )
001 Fisher Hall
Princeton, NJ 08544
United States
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.