TY  - RPRT
        AU  - Bossler, Mario
AU  - Moog, Alexander
AU  - Schank, Thorsten
        TI  - Labor Demand Responses to Changing Gas Prices
        PY  - 2023/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 16015
        UR  - https://www.iza.org/publications/dp16015
        AB  - In course of the current energy crisis, the consequences of increasing gas prices are heavily discussed. To date, however, there is no evidence of the impact of gas prices on the labor market. Using administrative employment data from 2012–2020, we find for manufacturing establishments a gas price elasticity of labor demand of −0.02, likely reflecting a scale effect. 
We also show that a rise in the gas price leads to an increase in establishment closure. A negative impact of the gas price on wages of 2 percent is consistent with rent-sharing.

        KW  - labor demand
KW  - gas price
KW  - elasticity
KW  - wages
KW  - establishment closure
        ER  -