Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/264899 
Year of Publication: 
2022
Series/Report no.: 
Danmarks Nationalbank Working Papers No. 187
Publisher: 
Danmarks Nationalbank, Copenhagen
Abstract: 
I provide new microeconometric estimates of the effect of labor market tightness on wages at the firm level. Using Danish data on vacancies and unemployment at the occupational level and firm data on the occupational composition of employees, I construct firm-specific measures of labor market tightness. Using this measure, I find an elasticity of wages with respect to tightness of 0.01-0.02, which implies an increasing but relatively flat wage-setting curve. The results are in line with the qualitative implications of the canonical search-andmatching model of the labor market.
Subjects: 
Inflation, wages and prices
economic activity and employment
JEL: 
E24
J31
J63
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.