Table 2
Labor Supply Elasticity to the Firm by Task Group
| Routine | NRM | NRC | |
|---|---|---|---|
| Separation rate to employment | |||
| log wage (ϵe sw) | -1.271*** | -1.203*** | -0.905*** |
| (0.012) | (0.019) | (0.020) | |
| Observations | 1,766,919 | 497,460 | 733,684 |
| Separation rate to nonemployment | |||
| log wage (ϵn sw) | -1.628*** | -1.610*** | -1.302*** |
| (0.008) | (0.013) | (0.015) | |
| Observations | 3,351,798 | 930,594 | 1,177,920 |
| Hiring probability from employment | |||
log wage  | 1.737*** | 1.519*** | 1.887*** |
| (0.013) | (0.020) | (0.022) | |
| ϵθw | 1.065 | 1.021 | 1.079 |
| Observations | 574,157 | 199,582 | 205,774 |
| Share of hires from employment (θ) | 0.387 | 0.328 | 0.428 |
| Firm-level labor supply elasticity (ϵLw) | 1.696 | 1.659 | 0.958 |
Source: SIAB and BHP 1985–2014. Authors’ calculations.
Notes: Clustered standard errors at the person level in parentheses. Covariates included (see Section III for details): dummy variables for age and education groups, immigrant status, occupation fields, economic sector, worker composition of the firm (shares of low-skilled, high-skilled, female, part-time, and immigrant workers in the plant’s workforce), dummy variables for plant size, the average age of its workforce, year and federal state fixed effects, unemployment rate by year and federal state. Significance:
* p < 0.10,
** p < 0.05,
↵*** p < 0.01.
NRM, nonroutine manual; NRC, nonroutine cognitive.