Negative Wage Elasticity of Labor Demand Score
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A Negative Wage Elasticity of Labor Demand Score is a Wage Elasticity of Labor Demand Score of Negative Price Elasticity of Demand Score.
- Context:
- It can (typically) be a Typical Value.
- It can range from being Inelastic Labor Demand to being Unit Elastic Labor Demand to being Elastic Labor Demand.
- Example(s):
- …
- Counter-Example(s):
- See: Labor Demand, Wage Change.
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 ELASTIC.
- If the absolute value of the elasticity of labor demand is < 1, that portion of demand curve is considered INELASTIC.
- (If the absolute value of the elasticity of labor demand is = 1, that portion of demand curve is considered UNIT ELASTIC.)
- In the relative sense, we say that a demand is more elastic than something else if it is more responsive to price. We similarly might say that a particular demand is less elastic [or more inelastic] than another if it is less responsive to price. This has more to do with a rank ordering of the absolute values of the elasticity calculation than comparison with a fixed classification point. For example suppose that a point on Labor Demand A has an elasticity of -3 and a point on Labor Demand B has an elasticity of -7. They would both be technically classified as elastic, but we could also say that B is more elastic that A.
- 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.