Mean Labor Supply Elasticity by NAICS Sector
| NAICS Sector | Mean Labor Supply Elasticity 2005 Quarter 1 | Mean Labor Supply Elasticity 2010 Quarter 4 |
|---|---|---|
| Agriculture | 1.31 | 1.10 |
| Mining/oil/natural gas | 1.60 | 1.28 |
| Utilities | 1.40 | 1.22 |
| Construction | 1.59 | 1.27 |
| Manufacturing | 1.72 | 1.40 |
| Wholesale trade | 1.52 | 1.26 |
| Resale trade | 1.07 | 0.95 |
| Transportation | 1.45 | 1.20 |
| Information | 1.22 | 0.98 |
| Finance and insurance | 1.38 | 1.12 |
| Real estate and rental | 1.13 | 0.94 |
| Profession/scientific/technical services | 1.30 | 0.98 |
| Management of companies | 1.00 | 0.87 |
| Administrative support | 0.97 | 0. 86 |
| Educational services | 0.96 | 0.85 |
| Health care and social assistance | 0.87 | 0.75 |
| Arts and entertainment | 0.93 | 0.75 |
| Accommodation and food services | 0.96 | 0.89 |
| Other services | 1.19 | 1.00 |
| Public administration | 1.11 | 0.96 |
Notes: The numbers in this table represent averages by NAICS sector of the estimated labor supply elasticity to the firm. Three separate regressions, corresponding to Equations 9–11, were estimated separately for each firm in the data that met the conditions described in the data section. The coefficients on log earnings in each regression were combined, weighted by the share of recruits and separations to employment, separation rates, and growth rates according to Equation 6 to obtain the estimate of the labor supply elasticity to the firm. Demographic and human capital controls include age, age-squared, and indicator variables for gender, ethnicity, racial status, and education level. Employer controls include number of employees working at the firm. Year effects are included in all models.