Cross-Wage Elasticity of Labor Demand Measure

A Cross-Wage Elasticity of Labor Demand Measure is a Cross-Price Elasticity of Demand Measure for labor demand and labor wage with respect to two different occupations.

• Context:
  • It can be used to compare two Job Types (to see if the they are complementary jobs or competing jobs).
  • It can produce a Cross-Wage Elasticity of Labor Demand Value (which can range from being a Positive Cross-Wage Elasticity to being a Negative Cross-Wage Elasticity).
  • Ut can be expressed as [math]\displaystyle{ \frac{\% \Delta E (\text{job} \ a)}{\% \Delta W (\text{job} \ b)} }[/math].
  • …
• Counter-Example(s)
  • a Cross-Price Elasticity of Product Demand Measure.
  • a Wage Elasticity of Labor Demand Measure.
• See: Labor Substitutability, Labor Demand Curve.

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