Wage Inelastic Labor Demand
(Redirected from Inelastic Labor Demand)
Jump to navigation
Jump to search
A Wage Inelastic Labor Demand is a price inelastic demand ([math]\displaystyle{ \gt -1 }[/math]) that applies to negative wage elasticity of labor demand (for labor demand change and labor wage change)
- Context:
- It can (typically) indicate that:
- Labor Demand increases slowly relative to a Wage Decrease.
- Labor Demand decreases slowly relative to a Wage Increase.
- It can (typically) indicate that:
- Example(s):
- a Inelastic Physician Demand of -0.36 (if wage of physicians increases 36% but demand for physicians only falls by 10%).
- …
- Counter-Example(s):
- See: Price Elasticity Measure.
References
2013
- (Smith, 2013) ⇒ Clair Smith. (2013). “The Elasticity of Labor Demand." Economics 315: Labor Economics Course, Penn State
- QUOTE: ... The terms elastic and inelastic, as used above, have both technical and relative uses. The technical use depends on the absolute value of the elasticity calculation above. ...
... If the absolute value of the elasticity of labor demand is < 1, that portion of demand curve is considered INELASTIC.
- QUOTE: ... The terms elastic and inelastic, as used above, have both technical and relative uses. The technical use depends on the absolute value of the elasticity calculation above. ...