Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272642 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16015
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
In course of the current energy crisis, the consequences of increasing gas prices are heavily discussed. To date, however, there is no evidence of the impact of gas prices on the labor market. Using administrative employment data from 2012–2020, we find for manufacturing establishments a gas price elasticity of labor demand of −0.02, likely reflecting a scale effect. We also show that a rise in the gas price leads to an increase in establishment closure. A negative impact of the gas price on wages of 2 percent is consistent with rent-sharing.
Subjects: 
labor demand
gas price
elasticity
wages
establishment closure
JEL: 
J23
Q31
Document Type: 
Working Paper

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