Scandinavian Working Papers in Economics

Working Paper Series,
Stockholm University, Swedish Institute for Social Research

No 4/2017: Labour demand and real wages

Ante Farm
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Ante Farm: Swedish Institute for Social Research, Stockholm University, Postal: SOFI, Stockholm University, SE-106 91 Stockholm, Sweden

Abstract: This paper shows that the traditional model of labour demand in a firm is incomplete and that the determinants of labour demand in a complete model include the demand for the firm’s products but not the real wage.

Keywords: Labour demand; employment; real wage

JEL-codes: J23

16 pages, April 18, 2017

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