Replication data for: In Search of Labor Demand

We propose and estimate a novel specification of labor demand which encompasses search frictions and the role of entrepreneurs in new firm creation. Using city-industry variation over four decades, we estimate the wage elasticity of employment demand to be close to -1 at the industry-city level and -0.3 at the city level. We argue that the difference between these estimates reflects the congestion externalities predicted by the search literature. Our estimates also indicate that entrepreneurship should be treated as a scarce factor in the determination of labor demand. We use our estimates to evaluate the impact of large changes in the minimum wage on employment.

本文提出并估计了一种全新的劳动需求设定模型，该模型涵盖了搜索摩擦（search frictions）以及企业家在新企业创建过程中的作用。基于四十年间的城市-行业维度变异数据，本文估计得到：行业-城市层面的劳动需求工资弹性接近-1，而城市层面的弹性约为-0.3。本文认为，两类估计值之间的差异反映了搜索理论文献所预测的拥堵外部性。本文的估计结果还表明，在劳动需求的决定因素中，企业家才能应被视为一种稀缺要素。最后，本文利用上述估计结果，评估了最低工资大幅变动对就业的影响。